Guangshen Railway(601333) 国海证券·2024-05-04 14:30Investment Rating - The report maintains an "Accumulate" rating for the company [1][6]. Core Views - The company has shown significant growth in passenger volume, particularly in cross-border traffic, which is expected to continue contributing to revenue growth [3][4]. - The company's revenue for Q1 2024 reached 6.6 billion yuan, a year-on-year increase of 7.4%, while net profit attributable to shareholders was 550 million yuan, up 35% year-on-year [2][3]. - The report forecasts revenue for 2024-2026 to be 28.32 billion yuan, 30.16 billion yuan, and 31.61 billion yuan respectively, with net profits of 1.305 billion yuan, 1.479 billion yuan, and 1.555 billion yuan [4][5]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a passenger volume of 18.036 million, a 49.4% increase year-on-year, with cross-border passenger volume growing by 130.8% [3][4]. - The total freight volume was 18.387 million tons, reflecting a 7.5% increase year-on-year [3]. Market Position - The company is positioned as a core railway asset in the Greater Bay Area, benefiting from the opening of new high-speed rail lines and upgrades to existing stations [4][5]. - The report highlights the ongoing enhancement of network connectivity in the Bay Area, which is expected to support traffic growth [4]. Earnings Forecast - The projected earnings per share (EPS) for 2024-2026 are 0.18 yuan, 0.21 yuan, and 0.22 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 18, 16, and 15 [5][6]. - The report anticipates a steady increase in revenue and net profit, with growth rates of 8%, 6%, and 5% for revenue, and 23%, 13%, and 5% for net profit over the same period [5][6].