Group 1 - The public demand for travel is significantly increasing due to the upcoming Mid-Autumn Festival and National Day, prompting safety inspections at highway service areas [1] - The inspections focus on key areas such as fire safety, charging facilities, and gas stations, aiming to strengthen safety measures during the holiday period [1][2] - A joint action was conducted covering two service areas, utilizing a "site inspection + immediate feedback" approach to ensure thorough checks of various facilities [1] Group 2 - Fire safety checks included verifying the availability and validity of fire extinguishers, fire hydrants, and emergency lighting, as well as ensuring clear access to fire exits [1] - Issues such as insufficient pressure in fire extinguishers and unclear safety signs were identified, with immediate rectification orders issued to service area management [1] - With the rise of electric vehicles, charging facilities were also a focus, with inspections on the operational status of charging stations and their efficiency to meet holiday demand [1] Group 3 - For gas stations, safety equipment such as unloading ports, fire sandboxes, and static grounding alarms were rigorously checked, along with sales records to prevent safety hazards [2] - Market regulatory personnel conducted random checks on food and products sold in gas station convenience stores to prevent expired or substandard goods from entering the market [2] Group 4 - A representative from the second team emphasized the importance of cross-departmental cooperation to identify and mitigate risks, ensuring a safe and convenient travel environment for the public [3] - During the holiday period, the team will enhance duty monitoring and road inspections to maintain service support [3]

Investment Rating - The report rates the industry as "Positive" [1] Core Insights - The report reviews the reform process of Japan's highway industry, highlighting the privatization reform initiated in 2005, which separated ownership and operational rights, and the significant debt burden inherited by the administrative body [5][24] - It discusses the flexible toll setting introduced post-privatization, including the implementation of discount systems and the extension of toll collection periods to manage debt [5][57] - The financial health of Japanese highway companies is characterized by stable revenues but low profit margins, with a compound annual growth rate (CAGR) of less than 1% in revenue from 2006 to 2023 [5][72] - The report suggests that China's highway sector can learn from Japan's experiences, particularly in extending toll collection periods and enhancing revenue from service areas [6][82] Summary by Sections 1. Review of Japan's Highway Reform Process - The privatization reform in 2005 led to the establishment of six highway companies responsible for construction and management, while a separate body managed the debt [24] - The debt inherited was approximately 37 trillion yen, with a current balance of about 25 trillion yen as of the end of 2023 [5][57] 2. Comparison of Japanese Highway Companies' Operations - The report notes that Japan's highway companies manage 94% of the national highway network, with stable traffic volumes and toll revenues [5][65] - The revenue from tolls constitutes about 90% of total income, while service area operations contribute significantly to profits [5][76] 3. Investment Recommendations - The report highlights the scarcity of high-growth industries in a complex macroeconomic environment, emphasizing the value of high-dividend assets in the highway sector [7] - It recommends specific high-dividend stocks such as Anhui Expressway H, Ninghu Expressway H, and China Merchants Highway, particularly in light of potential regulatory changes extending toll collection periods [7][86]