According to the research report of HTSC on September 6th, China Railway's revenue and net profit for the first half of the year decreased by 7.8% and 12.1% respectively on a yearly basis, and the net profit for the second quarter decreased by 18.7% to 6.8 billion yuan, which was lower than the bank's expectations. The main reason for the decline was the decrease in revenue and the short-term rigidity of expenses, which led to a decline in profit margin. Taking into account the slowdown in traditional infrastructure investment, the bank has lowered its net profit forecast for the company from 2021 to 2026 to 31.6 billion yuan, 30.8 billion yuan, and 30.2 billion yuan respectively. However, due to the company's abundant copper resources and the potential benefits from the rising prices of commodity resources, the bank has set a target price of 4.9 Hong Kong dollars with a PE ratio of 3.5 for this year, and maintains a "shareholding" rating.