车客流量继续修复，价格弹性初步显现

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - In 2023, the passenger flow and train traffic of the company returned to growth, with price elasticity beginning to show, leading to a recovery in profitability [5][6]. - The first quarter of 2024 continues to see a recovery in travel demand, with the company expected to turn profitable in the Jiangfu Anhui line [6]. - The company is in a profit recovery phase, supported by increased capacity utilization and a stable competitive landscape [6]. Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of 40.683 billion yuan, a year-on-year increase of 110.4%, and a net profit attributable to shareholders of 11.546 billion yuan, returning to profitability [5]. - For Q1 2024, the company reported operating revenue of 10.106 billion yuan, a year-on-year increase of 13.1%, and a net profit of 2.963 billion yuan, up 33.1% year-on-year [5][6]. - The company plans to distribute a cash dividend of 5.479 billion yuan for 2023 and intends to use 1 billion yuan of its own funds to repurchase and cancel shares [5]. Passenger and Revenue Growth - The passenger volume for the main line increased by 209.1% year-on-year, recovering to 100.1% of 2019 levels [5]. - The cross-line train mileage for the main line grew by 66.2% year-on-year, recovering to 116.5% of 2019 levels [5]. - The company’s passenger transport revenue increased by 215.6% to 16.08 billion yuan, recovering to 102.6% of 2019 levels [5]. Cost and Profitability - The operating cost increased by 31.9% to 22.052 billion yuan, with depreciation costs remaining rigid [5]. - The company’s financial expenses decreased by 14.1% year-on-year to 3.179 billion yuan due to a significant increase in revenue outpacing cost growth [5]. - The company’s net profit for Q1 2024 was 2.963 billion yuan, with a profit total of 3.987 billion yuan for the main line, up 25.5% year-on-year [6]. Future Outlook - The company is expected to see continued growth in net profit, with projections of 13.3 billion yuan, 14.9 billion yuan, and 16.8 billion yuan for 2024 to 2026, respectively [6]. - The price elasticity of the main line and the significant growth in cross-line trains are anticipated to contribute positively to profitability [6].