客流回归常态，跨线车平稳增长，业绩稳健提升

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price compared to the benchmark index [20][23]. Core Views - The company has shown a strong recovery in passenger flow, with a significant increase in revenue and net profit in 2023 and Q1 2024, indicating a robust operational performance [4][9]. - The company is expected to continue its growth trajectory, with projected revenues and net profits increasing steadily over the next few years [20][8]. Summary by Sections Financial Performance - In 2023, the company reported operating revenue of 40.68 billion yuan, a year-on-year increase of 110.4%, and a net profit of 11.55 billion yuan, marking a turnaround from losses [4][9]. - For Q1 2024, the operating revenue was 10.11 billion yuan, up 13.1% year-on-year, with a net profit of 2.96 billion yuan, reflecting a 33.1% increase [4][9]. Passenger Flow and Operations - The company experienced a recovery in passenger flow, with 53.25 million passengers on its mainline, a 209.1% increase year-on-year, returning to pre-pandemic levels [5][13]. - The operational mileage for cross-line services also grew, with the Beijing-Shanghai line achieving 92.04 million train kilometers, a 66.2% increase [5][13]. Cost Management - The company's operating costs for 2023 were 22.05 billion yuan, a 31.9% increase year-on-year, while Q1 2024 costs were 5.44 billion yuan, up 5.6% [6][15]. - The company has effectively managed its expenses, with a significant reduction in financial costs and a decrease in expense ratios, indicating improved operational efficiency [6][15]. Future Projections - Revenue forecasts for 2024-2026 are 44.27 billion yuan, 47.38 billion yuan, and 50.47 billion yuan, representing year-on-year growth rates of 8.8%, 7.0%, and 6.5% respectively [20][8]. - Net profit projections for the same period are 13.55 billion yuan, 15.47 billion yuan, and 17.13 billion yuan, with growth rates of 17.4%, 14.2%, and 10.7% respectively [20][8].