Beijing-Shanghai High Speed Railway (SH:601816) Guohai Securities·2024-09-01 03:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady revenue growth, with a year-on-year increase of 8.21% in H1 2024, achieving a revenue of 20.862 billion yuan. The net profit attributable to shareholders increased by 23.77% to 6.357 billion yuan [5][6] - The performance of cross-line operations has outperformed the main line, with passenger transport on the main line decreasing by 1.1% year-on-year, while cross-line train operation mileage increased by 7.9% [5][6] - The company is expected to benefit from sustained demand in the railway sector, supported by a robust summer transportation season [5][6] Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 20.862 billion yuan, up 8.21% year-on-year, and a net profit of 6.357 billion yuan, up 23.77% year-on-year. In Q2 2024, revenue was 10.756 billion yuan, up 4.02% year-on-year, with a net profit of 3.394 billion yuan, up 16.62% year-on-year [5][6] - The gross profit margin for H1 2024 was 47.39%, an increase of 3.30 percentage points year-on-year, while the net profit margin was 30.47%, up 3.83 percentage points year-on-year [6][10] Growth Potential - The company is expected to see revenue growth of 9% in 2024, 6% in 2025, and 5% in 2026, with net profit growth projected at 17%, 13%, and 8% respectively [8][9] - The company’s core asset value and growth potential remain strong, with an expected EPS of 0.27 yuan in 2024, increasing to 0.33 yuan by 2026 [8][9] Operational Insights - The company’s subsidiary, Jingfu Anhui, has shown a trend of narrowing losses, with a net loss of 148 million yuan in H1 2024, down from 569 million yuan in H1 2023 [6][7] - The operational mileage for Jingfu Anhui increased by 10.5% year-on-year, indicating a recovery in capacity utilization [6][7]