Beijing-Shanghai High Speed Rail discloses 2023 annual report and 2024 quarterly report
The Beijing-Shanghai High Speed Rail disclosed the 2023 annual report and the 2024 quarterly report. The company's revenue in 2023 was 40.68 billion yuan, up 110.4% year on year, and net profit to mother was 11.55 billion yuan, reversing the year-on-year loss; the company's revenue for the first quarter of 2024 was 10.11 billion yuan, up 13.1% year on year, and net profit to mother was 2.96 billion yuan, up 33.1% year on year.
Passenger flow returned to normal, and cross-line passenger traffic continued to rise year on year, and railway passenger flow gradually returned to normal in 2023. The company operated 53.252 million passenger traffic on the main line, up 209.1% year on year, basically the same level as in 2019; the cross-line vehicle business volume grew steadily, with the Beijing-Shanghai Line operating mileage of 92.044 million kilometers, an increase of 66.2% year on year. The operating mileage of Jingfu Anhui Company trains was 35.595 million kilometers, an increase of 53.7% year on year. The overall business scale of the company grew further in the first quarter of 2024, and revenue continued to increase year-on-year.
The cost performance was good, and Jingfu Anhui Company significantly reduced losses
The company's depreciation costs are basically stable. Costs such as energy expenses, contract management fees, and train usage fees have increased as business volume increases and liquidation prices have increased. In 2023, the company's operating costs were 22.05 billion yuan, up 31.9% year on year. The company's operating cost in the first quarter of 2024 was 5.44 billion yuan, up 5.6% year on year. The company's expense level performed well, with financial expenses falling significantly, and due to the return to normal revenue, the fee rate dropped significantly. The fee rate for the 2023 period was 7.81%, a year-on-year decrease of 11.33 pcts, and the fee rate for the first quarter of 2024 was 6.68%, a year-on-year decrease of 2.97 pcts.
Overall, the company's performance is basically in line with expectations. Among them, Jingfu Anhui Company performed well and achieved significant loss reductions in the first quarter of 2023 and 2024.
Investment advice
Railway passenger traffic will increase further in 2024, and the company's performance is expected to continue to grow steadily. The company's revenue is expected to be 44.27 billion yuan, 47.38 billion yuan, and 50.47 billion yuan respectively in 2024-2026, up 8.8%, 7.0% and 6.5%, respectively. Net profit to the mother is 13.55 billion yuan, 15.47 billion yuan, and 17.13 billion yuan respectively, up 17.4%, 14.2% and 10.7% year-on-year respectively, maintaining the “increase” rating.
Risk warning:
The macroeconomic economy declined, business volume growth fell short of expectations, and cost increases exceeded expectations.