Daqin Railway(SH:601006) Xin Lang Cai Jing·2025-09-12 02:34Core Viewpoint - The company reported a decline in net profit for the first half of 2025, despite a slight increase in revenue, primarily due to weak coal transportation performance and rising operational costs [1][2][3]. Financial Performance - In H1 2025, the company achieved revenue of 37.29 billion yuan, a year-on-year increase of 1.9%, while net profit attributable to shareholders was 4.12 billion yuan, a decrease of 29.8% [1]. - Q2 2025 revenue was 19.49 billion yuan, up 6.3% year-on-year, but net profit fell by 45.2% to 1.54 billion yuan [1]. - The total coal dispatch volume for H1 2025 was 260 million tons, down 10.3% year-on-year, with the Daqin line contributing 190 million tons, a decrease of 2.2% [1]. Business Segmentation - Revenue from freight business was 26.09 billion yuan, down 1.7% year-on-year due to volume decline; passenger transport revenue increased by 2.6% to 5.04 billion yuan, driven by rising travel demand; other business revenue rose by 22.3% to 5.66 billion yuan [1]. - The company’s operating costs for H1 2025 were 32.07 billion yuan, an increase of 10.8%, leading to a gross margin of 14.0%, down 6.9 percentage points [2]. Cost Structure - Major cost components included personnel expenses of 9.78 billion yuan (up 2.3%), freight service fees of 9.71 billion yuan (up 37.7%), and passenger service fees of 3.36 billion yuan (up 6.6%) [2]. - Sales expenses decreased by 68.2% to 0.23 billion yuan, while management expenses increased by 37.9% to 0.36 billion yuan due to higher provisions [2]. Investment Outlook - The company is positioned as a key player in the coal transportation sector, with potential for recovery in coal volumes as the macroeconomic environment improves and production in Shanxi resumes [3]. - A cash dividend of 0.08 yuan per share is proposed, totaling 1.61 billion yuan, which represents 39.2% of the half-year net profit [3]. - Profit forecasts have been adjusted, with expected net profits of 7.01 billion yuan, 7.58 billion yuan, and 7.97 billion yuan for 2025-2027, corresponding to a PE ratio of 17.6x and a PB ratio of 0.8x for 2025 [3].