Daqin Railway(SH:601006) CMS·2025-09-11 14:35Investment Rating - The report maintains an "Accumulate" rating for the company [3] Core Views - The company's revenue for the first half of 2025 was CNY 37.29 billion, a year-on-year increase of 1.9%, while the net profit attributable to shareholders decreased by 29.8% to CNY 4.12 billion [1] - The coal transportation volume remains weak, with a 10.3% year-on-year decline in coal dispatch volume for the first half of 2025 [6] - The company benefits from the growing demand for passenger transport, achieving a revenue increase of 2.6% in this segment [6] - The report anticipates a recovery in transportation volume in the medium to long term as the macroeconomic environment improves and coal production in Shanxi recovers [6] Financial Data Summary - Total revenue projections for 2025 are CNY 70.798 billion, reflecting a year-on-year decrease of 5% [2] - The net profit attributable to shareholders is projected to be CNY 7.008 billion for 2025, a decrease of 22% compared to 2024 [2] - The company's earnings per share (EPS) is expected to be CNY 0.35 in 2025, down from CNY 0.45 in 2024 [2] - The price-to-earnings (PE) ratio for 2025 is projected at 17.6x, while the price-to-book (PB) ratio is expected to be 0.8x [6] Performance Metrics - The company's operating costs for the first half of 2025 were CNY 32.07 billion, a year-on-year increase of 10.8%, leading to a gross margin of 14.0%, down 6.9 percentage points [6] - The return on equity (ROE) is projected to decline to 4.5% in 2025 from 6.2% in 2024 [13] - The asset-liability ratio is expected to decrease to 16.7% in 2025 from 17.9% in 2024 [13]