According to the WiseNews APP, Guangshen Rail (00525) surged more than 4%. As of press time, it is up 4.19% with a price of HKD 2.24 and a turnover of HKD 16.966 million.

On the news side, the official website of China Railway 12306 previously released four pricing adjustment notices: from June 15th, the passenger ticket prices of four high-speed railway lines, namely Wuhan-Guangzhou High-Speed Railway, Shanghai-Hangzhou High-Speed Railway, Shanghai-Kunming High-Speed Railway and Hangzhou-Ningbo High-Speed Railway, will be adjusted. SWHY pointed out that the marketization of high-speed rail ticket prices is an important measure for the development of China's high-speed rail industry; taking the Hangzhou-Ningbo High-Speed Railway as an example, the announced second-class seat price is around 20% higher than the current price. The marketization mechanism of high-speed rail ticket prices is gradually improving, which is bullish for high-speed rail operating companies and high-speed rail line assets owning companies.

According to Guolian Securities, in the first quarter of 2024, Guangshen Rail achieved operating income of RMB 6.6 billion, a YoY increase of 7.39%; achieving a net profit attributable to the parent company of RMB 547 million, a YoY increase of 34.99%. During the period, the company's passenger/freight volume increased by 49.4%/7.5% YoY; the gross profit margin increased by 2.2 percentage points YoY, and the profit level improved significantly. The bank pointed out that with the renovation of Guangzhou station and Guangzhou East Station into high-speed rail stations, the company is expected to fully enter the high-speed rail operation field.