Beijing-Shanghai High Speed Railway (SH:601816) 3 6 Ke·2025-05-15 11:43Core Viewpoint - The financial performance of Beijing-Shanghai High-Speed Railway (京沪高铁) shows a revenue of 42.157 billion yuan in 2024, a year-on-year increase of 3.62%, and a net profit of 12.768 billion yuan, reflecting a growth of 10.59% compared to the previous year. Despite a decrease in passenger flow, the profit growth outpaced revenue growth, indicating effective pricing strategies and operational efficiency [1][5][7]. Financial Performance - In 2024, the passenger volume was 52.016 million, a decrease of 2.31% year-on-year, while the revenue from passenger services was approximately 15.83 billion yuan, accounting for 37.5% of total revenue. Revenue from network services was about 25.95 billion yuan, making up 61.6% of total revenue [1][10][11]. - The company has adopted a flexible pricing mechanism with seven tiers of ticket prices during peak periods, which has contributed to the increase in profit despite the decline in passenger numbers [1][7]. Operational Model - The company operates under a "delegated management + asset operation" model, allowing it to maintain high efficiency with only 86 employees, resulting in a market capitalization of 290 billion yuan, which is double that of its closest competitor [2][9]. - The unique operational model enables the company to focus on asset ownership and quality supervision while outsourcing transportation management, significantly reducing operational costs [9][10]. Market Dynamics - The competitive landscape is changing, with increased competition from the aviation sector due to lower airfares and enhanced inter-airline cooperation, which is affecting the high-speed rail's business travel segment [5][14][15]. - The company is responding to these challenges by adjusting its operational strategies, including the introduction of new train services and enhancing its digital capabilities [17][18]. Future Outlook - Analysts remain optimistic about the company's future, citing potential for further revenue growth through market-driven pricing adjustments and operational improvements [18]. The company plans to enhance its smart operation capabilities and diversify its service offerings to attract a broader customer base [18].