Beijing-Shanghai High Speed Railway (601816) 兴业证券·2024-11-10 05:59Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Views - The company achieved a revenue of 32.355 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 4.77%. The net profit attributable to shareholders reached 10.015 billion yuan, up 12.35% year-on-year [2]. - In Q3 2024, the company reported a revenue of 11.493 billion yuan, a decline of 0.94% year-on-year, and a net profit of 3.658 billion yuan, down 3.17% year-on-year [2]. - The company has committed to a 50% dividend payout ratio and plans to repurchase shares, indicating a strong commitment to shareholder returns [6][7]. Financial Performance Summary - For the first three quarters of 2024, the company incurred operating costs of 16.771 billion yuan, a year-on-year increase of 1.45%, resulting in a gross profit of 15.584 billion yuan, which is an 8.60% increase year-on-year. The gross margin stood at 48.17%, up 1.70 percentage points year-on-year [3]. - The company’s financial projections for 2024-2026 estimate net profits of 12.759 billion yuan, 13.847 billion yuan, and 14.701 billion yuan respectively, with corresponding PE ratios of 21.5X, 19.8X, and 18.6X [7]. - The report highlights a significant improvement in the performance of the company's subsidiary, Jingfu Anhui, which turned a profit in Q3 2024 after previous losses [3][5]. Market Dynamics - The implementation of a floating ticket pricing mechanism since December 2020 has positively impacted the company's revenue, with ticket prices for certain routes increasing significantly over the years [4]. - The report anticipates that as the macroeconomic environment improves and the railway network expands, the company's performance is expected to show steady growth, supported by potential increases in ticket prices and capacity [7].