Understanding the Market | GUANGSHEN RAIL shares rose over 8% again, with a cumulative increase of over 30% after earnings, driven by high growth in performance from the Hong Kong high-speed rail
GUANGSHEN RAIL's stock price rose over 8% again, with a cumulative increase of over 30% after the earnings report. As of the time of writing, the stock price is HKD 2.58, with a trading volume of HKD 61.1232 million. The company's operating revenue in the first half of the year was RMB 13.969 billion, a year-on-year increase of 8.08%; net profit was RMB 1.109 billion, a year-on-year increase of 21.55%. Huatai Securities pointed out that the growth in profit was mainly driven by the increase in unit price of freight network clearing services and the demand for connectivity in the Greater Bay Area. The company plans to open multiple high-speed rail lines in the future to further drive performance growth
According to Zhitong Finance APP, GUANGSHEN RAIL (00525) has risen over 8% again, with a cumulative increase of over 30% since its earnings report. As of the time of publication, it is up 7.5%, priced at HKD 2.58, with a transaction volume of HKD 61.1232 million.
In terms of news, GUANGSHEN RAIL previously released its interim results, reporting an operating income of RMB 13.969 billion in the first half of the year, an increase of 8.08% year-on-year; the net profit attributable to shareholders of the listed company was RMB 1.109 billion, an increase of 21.55% year-on-year. Huatai Securities pointed out that the company's profit growth in the first half of the year was mainly due to: an increase in the unit price of freight network clearing services; driven by the demand for connectivity in the Greater Bay Area, the company increased the number of high-speed rail services to Hong Kong; during the period, it recorded subsidies related to government driving demand amounting to RMB 80 million.
The company's performance shows that the increase in long-distance high-speed rail lines with higher passenger prices has driven the growth of long-distance train revenue. In the second half of 2024, the company will add one pair of high-speed rail services from Zhangjiajie to Hong Kong West Kowloon, and in 2025, it will add one pair of services from Wuhan to Hong Kong West Kowloon. In addition, Shenzhen has released measures to optimize and adjust real estate policies. He Qianru, director of the National Research Center of Midland Realty, previously stated that the trend of Hong Kong people investing in the Greater Bay Area will continue to strengthen, and with "consumption moving north," more Hong Kong residents will personally experience the benefits of living and working in the Greater Bay Area, which will become the biggest motivation for purchasing property
