The Zhitong Finance App learned that Zhongtai Securities released a research report stating that dividend assets are still the direction of fund allocation. In an environment of volatile adjustments, high-quality targets with relatively steady management and emphasis on shareholder returns are expected to win the continued attention of the market.

In terms of individual stocks, the highway sector focuses on recommending the Shandong Expressway (600350.SH) (), where the main road and bridge business is improving, and the dividend policy is continuous and stable; the railway sector suggests focusing on the Beijing-Shanghai High Speed Rail (601816.SH), etc.; the port sector focuses on Qingdao Port (), which has an outstanding position as a hub and where integration dividends are expected to continue to be released; it is recommended to focus on Tangshan Port (DAB); the bulk supply chain sector suggests focusing on Xiamen Guomao (DAB), which currently has a low valuation and is expected to improve profitability in the future 600377.SH 601298.SH 601000.SH 600755.SH) etc.

The main views of Zhongtai Securities are as follows:

August performance review: sector gains outperformed Shanghai and Shenzhen 300. In August 2024, the Transportation (Shenwan) Index fell 4.8%, outperforming the Shanghai and Shenzhen 300 Index by 1.3 percentage points; Shandong Expressway (6.7%) in the SW Expressway sector had a large increase; Western Venture (-0.2%) in the SW Railway Transportation sector had a smaller decline; Qingdao Port (-0.3%) in the SW port sector had a smaller decline; and Gengxing (9.5%) in the SW raw materials supply chain service sector increased significantly.

2024 H1 business situation: 1) Highways: Toll revenue is expected to be under pressure. Affected by factors such as bad weather, free policies, and insufficient effective domestic demand, combined with the high traffic base after the liberalization of H1 epidemic control in 2023, the sector's H1 toll revenue is expected to decline year-on-year in 2024. The operating performance of toll road projects of listed companies will also be affected by factors such as location, changes in the surrounding competitive or collaborative road network, and the renovation and expansion of the project itself, and the renovation and expansion of connected or parallel roads. In 2024 H1, toll revenue for the Ning—Shanghai Expressway, Gan-Guangdong Expressway, Sichuan Chengyu Expressway, Guangdong Expressway, Shenzhen Expressway, Wantong Expressway, and Shandong Expressway was 0.2%, -0.2%, -1.9%, -4.6%, -6.4%, -8.5%, and -10.3%, respectively. Looking ahead to the second half of the year, highway passenger and truck traffic is expected to increase as holiday travel increases and economic development improves. 2) Railways: Passenger transport boom is better than freight. According to data from the National Railway Administration, in 2024, the cumulative passenger turnover of national railways was 777.952 billion kilometers, up 14.1% year on year; total freight turnover was 1747.11 billion tons and kilometers, down 2.9% year on year. The performance of passenger and cargo transportation is divided, and passenger transport profits are growing rapidly. In 2024 H1, the net profit of the Guangzhou-Shenzhen Railway increased by 34.7% year on year; the net profit of the Beijing-Shanghai High Speed Rail increased by 23.8% year on year; and the net profit of the Daqin Railway decreased by 22.2% year on year. Looking ahead to the second half of the year, passenger traffic is expected to continue to grow as high-speed rail networks are encrypted and demand for rail travel increases; in terms of freight, we still need to pay attention to changes in transportation demand for commodities such as coal. 3) Ports: Container throughput is growing faster. According to data from the Ministry of Transport, in 2024, ports across the country completed 8.56 billion tons of cargo throughput, up 4.6% year on year; container throughput was 161.84 millionteU, up 8.5% year on year. The performance of listed companies was affected by factors such as business structure, commodity structure, and hinterland development. In 2024, Qingdao Port's net profit to mother increased 3.1% year on year; Tangshan Port's net profit to mother increased 7.2% year on year. Looking ahead to the second half of the year, the port's total cargo throughput is expected to continue to grow, and it is expected that the growth rate of container throughput will still be higher than that of bulk goods.

September Investment Proposal: Dividend assets are still the direction of capital allocation. In an environment of volatile adjustments, high-quality targets with relatively steady management and emphasis on shareholder returns are expected to win the continued attention of the market. The highway sector focuses on the Shandong Expressway, where the main road and bridge business is improving, and the dividend policy is stable. It is recommended to focus on the China Merchants Highway, the Ning—Shanghai Expressway, the Guangdong Expressway, the Shenzhen Expressway, and the Cheng-Chongqing Expressway; the railway sector suggests focusing on the Beijing-Shanghai High Speed Rail, Guangzhou-Shenzhen Railway, and Daqin Railway; the port sector focuses on Qingdao Port, where the main seaport position is prominent and integration dividends are expected to continue to be released. The bulk supply chain sector suggests focusing on Tangshan Port; the bulk supply chain sector suggests focusing on Xiamen Guoxiangyu, where current valuations are low and future profitability is expected to improve.

Risk warning: macroeconomic downturn risk; industry policy adjustment risk; geopolitical risk; risk of third-party data trustworthiness; risk of measurement errors; risk of untimely use of information data updates.