Huatai Securities: Resonance of oil price decline and peak season for passenger transport, layout of transportation sector for economic recovery + certainty of interim report + stable dividends.

Huatai Securities research report indicates that in July, the market style may shift from extreme structure to a balance of offense and defense. Funds are expected to continue to focus on improving economic conditions and realizing profits, with the transportation sector positioned along the lines of "economic improvement + mid-year report certainty + defensiveness." In terms of economic improvement, falling oil prices alleviate cost pressures, and the start of the summer travel season may serve as a catalyst. In terms of mid-year report certainty, the results of logistics and express delivery companies' efforts to prevent internal competition are continuing, with express delivery prices improving year-on-year. In addition, the transmission of fuel surcharges due to the rise in oil prices suggests that companies should take advantage of the mid-year report window. In terms of defensiveness, falling oil prices are expected to alleviate cost pressures in high-speed freight transportation, and the recovery of traffic flow will provide support for the fundamentals of the highway sector.