Huatai Securities: In the first quarter, the transportation sector is expected to thrive in both passenger and freight transportation.

Huatai Securities research report pointed out that in the first quarter, the transportation sector is expected to prosper in both passenger and freight transportation. In terms of freight transportation, the risk premium of Middle East geopolitics has significantly boosted oil shipping rates, with Australian shipment volumes rebounding and geopolitical disturbances adding to it. This may lead to an increase in oil/gas bulk profits year on year. Overall profitability in the logistics sector is expected to improve, with e-commerce express delivery benefiting from price increases in the first quarter light season. The coal and railway sectors benefit from high overseas energy prices, catalyzing a simultaneous increase in volume and price for the "West Coal East Transport" railway. In terms of passenger transportation, the strong demand during the Spring Festival travel season may lead to significant improvement in profitability for the aviation sector, with passenger flow on railways also at a high level. Looking ahead, we are bullish on three main themes: 1) under the background of geopolitical disturbances, the peak shipping season will push up container shipping rates; rising coal prices may lead to a simultaneous increase in volume and price for the "West Coal East Transport" railway; 2) anti-internal consumption measures will continue to drive the recovery of profitability for e-commerce express delivery; 3) the logic of the aviation sector being pressurized by a rebound in oil prices, coupled with a long-term improvement in supply and demand dynamics, remains unchanged.