Guangshen Railway(SH:601333) EBSCN·2024-03-28 16:00Investment Rating - The report maintains an "Accumulate" rating for the company in the A-share market [2] - The H-share market also receives an "Accumulate" rating [3] Core Insights - The company reported a revenue of 26.2 billion yuan in 2023, a year-on-year increase of 31.4%, and achieved a net profit of 1.06 billion yuan, recovering from a loss of 2 billion yuan in the previous year [2] - The passenger volume for 2023 reached approximately 59.32 million, a 124% increase year-on-year, recovering to 70% of the level seen in 2019 [2] - The company’s main business gross margin turned positive at approximately 6.0% in 2023, compared to -12.8% in 2022 [2] Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 7.02 billion yuan, a 49.2% increase year-on-year, and a net profit of 39 million yuan, recovering from a loss of 1 billion yuan in the same period last year [2] - The company’s operating income for 2023 was 26.2 billion yuan, with a growth rate of 31.4% compared to 2022 [3] Passenger and Freight Operations - The company’s passenger revenue for 2023 was approximately 10.73 billion yuan, a 61% increase from 2022 and a 34% increase from 2019 [2] - Freight volume decreased by 3.3% year-on-year to about 16.03 million tons, but freight revenue increased by 13.1% to approximately 1.83 billion yuan due to improved service quality and efficiency [2] Business Recovery and Future Outlook - The company’s network clearing business revenue was 4.27 billion yuan, a 27% increase year-on-year, while railway operation service revenue was 4.19 billion yuan, a 15.7% increase year-on-year [2] - The report suggests that new cross-line long-distance trains will contribute to profit growth, and ongoing station upgrades are expected to further enhance performance [2]