Guangshen Railway Company (525) H1 2024 earnings summary

Executive summary

• Operating income for H1 2024 reached RMB12.92 billion, up 4.40% year-over-year; net profit attributable to shareholders was RMB912 million, a 34.65% increase year-over-year.

• Passenger transportation revenue rose 2.72%, with a significant 99.69% increase in Hong Kong Through Train revenue; freight transportation revenue declined 15.12% due to weaker market demand.

• Railway network usage and other transportation services revenue increased 9.74% year-over-year, reflecting higher demand and increased service provision.

Financial highlights

• Operating profit for H1 2024 was RMB1.27 billion, up 36.35% year-over-year.

• Net cash flows from operating activities increased 36.87% to RMB1.11 billion.

• Basic and diluted EPS were RMB0.1288, up 34.73% year-over-year.

• Weighted average return on net assets was 3.43%, up 0.79 percentage points year-over-year.

• Extraordinary gains totaled RMB11.23 million, mainly from government grants and asset disposals.

Outlook and guidance

• The company expects continued recovery in the passenger transportation market in H2 2024, supported by macroeconomic stability and policy measures.

• Plans include strengthening corporate governance, enhancing safety, optimizing transportation capacity, and improving operational efficiency.