Guoxin Securities: Maintains the "outperform" rating on Beijing-Shanghai high-speed rail, Beijing-Fuzhou, and Anhui. Turns loss into profit in the first quarter.

Guosen Securities research report pointed out that the net profit attributable to shareholders of Beijing-Shanghai high-speed railway will be 12.77 billion yuan in 2024 and 2.96 billion yuan in the first quarter of 2025. Due to the impact of domestic and international macroeconomic environment, the proportion of business travelers on the Beijing-Shanghai line has slightly decreased, with the annual passenger volume on the line decreasing by 2.3% to 52.016 million person-times. However, the cross-line train business volume still shows a steady growth trend, with the annual operating mileage of cross-line trains between Beijing and Shanghai reaching 102.507 million train kilometers, an increase of 11.4% year-on-year. The gross profit margin is expected to improve in 2024, and Beijing-Fujian Anhui Company turned losses into profits in the first quarter. In the medium to long term, the Beijing-Shanghai high-speed railway is a core asset of China's railway group, with strong profitability, stable operations, low risk, and gradual market pricing of high-speed rail opening up space for future performance growth. In addition, the subsidiary Beijing-Fujian Anhui Company still has potential for future profit growth. The "Outperform Market" rating is maintained.