According to the Zhitong Finance APP, Shenwan Hongyuan released a research report stating that in June, the fixed asset investment in railways reached 113.8 billion yuan, a year-on-year increase of 4.60%. Despite a high base (108.8 billion yuan in June 2024, with a growth rate of 10.18%), it still achieved high growth, highlighting the industry's high prosperity. According to data from the China State Railway Group, from January to June, the total fixed asset investment in railways nationwide reached 355.9 billion yuan, a year-on-year increase of 5.5%; the number of passengers sent by railways nationwide was 2.236 billion, a year-on-year increase of 6.7%; and the freight volume sent by railways nationwide was 255.8 million tons, a year-on-year increase of 1.8%. Based on previous bidding rhythms, the bidding for high-level maintenance of EMUs is expected to start in August; the bidding volume for EMUs and locomotives in the first half of the year was relatively low, and it is expected that the bidding volume will significantly increase in the second half of the year, with a year-on-year growth rate possibly exceeding expectations.
<h2>Shenwan Hongyuan's main viewpoints are as follows:</h2>
June railway fixed asset investment maintains high growth
In June, the fixed asset investment in railways reached 113.8 billion yuan, a year-on-year increase of 4.60%. Despite a high base (108.8 billion yuan in June 2024, with a growth rate of 10.18%), it still achieved high growth, highlighting the industry's high prosperity. In terms of key projects, in the first half of 2025, the newly built Chongqing to Xiamen high-speed railway segment from Chongqing East to Qianjiang will be put into operation, and the Yuxia high-speed railway from Chongqing East to Changsha will be fully connected; the Zhengzhou to Kaifeng intercity railway segment from Songcheng Road Station to Kaifeng Station will be completed and opened to traffic, achieving full operation of the Zhengkai intercity railway; the newly built Chongqing East Station will be put into operation, the renovation and upgrading project of Cangzhou Station will be completed, and the newly renovated Rizhao Station will be put into use, significantly enhancing the functions of key railway hubs.
Railway department increases night high-speed trains to cope with summer peak, CR450 operation time is approaching
In June, the railway passenger volume reached 373 million, a year-on-year increase of 3.6%. As the passenger flow during the summer transportation period continues to rise, the railway department has timely increased night high-speed trains to meet passenger demand; on July 21, at the State Council Information Office's series of themed press conferences on &#34;Successfully Completing the 14th Five-Year Plan,&#34; Deputy Director of the National Railway Administration An Lusheng introduced that the Chengyu Middle Line high-speed railway currently under construction will operate at a speed of 400 kilometers per hour after opening, allowing travel between Chengdu and Chongqing in 50 minutes.
Several rail transit equipment companies performed better than expected in the first half of the year, verifying the sector's prosperity
<ol>
<li>CRRC: It is expected to achieve a net profit attributable to shareholders of 6.722-7.562 billion yuan in the first half of the year, a year-on-year increase of 60-80%, with a net profit attributable to shareholders after deducting non-recurring gains and losses of 6.216-7.056 billion yuan, a year-on-year increase of 85-110%; 2) HENAN THINKER AUTOMATIC EQUIPMENT: It is expected to achieve a net profit attributable to shareholders of 276-314 million yuan in the first half of the year, a year-on-year increase of 45-65%, with a net profit attributable to shareholders after deducting non-recurring gains and losses of 274-313 million yuan, a year-on-year increase of 42-62%; 3) KTK Group: It is expected to achieve a net profit attributable to shareholders of 330-380 million yuan in the first half of the year, a year-on-year increase of 123.85-157.77%, with a net profit attributable to shareholders after deducting non-recurring gains and losses of 380-430 million yuan, a year-on-year increase of 173.49-209.47%; 4) XHSY: It is expected to achieve a net profit attributable to shareholders of 63-69 million yuan in the first half of the year, a year-on-year increase of 92.38-110.70%, with a net profit attributable to shareholders after deducting non-recurring gains and losses of 61-67 million yuan, a year-on-year increase of 94.49-113.63%
The vehicle bidding in the second half of the year is approaching, and the year-on-year data may exceed expectations</li>
</ol>
According to past bidding rhythms, the bidding for high-level maintenance of EMUs is expected to start in August; considering that the railway operating mileage in the first half of the year was only 301 kilometers, and based on the annual target of 2,600 kilometers, it is estimated that 2,300 kilometers of new lines will be put into operation in the second half of the year; the bidding volume for EMUs and locomotives in the first half of the year was relatively low, and it is expected that the bidding volume will significantly increase in the second half of the year, with a year-on-year growth rate possibly exceeding expectations.
Preferentially focus on the vehicle equipment sector, and recommend paying attention to core suppliers
With the peak of operation in 2025 and a year of high-level maintenance, vehicle equipment is more certain. Recommended: CRRC (601766.SH) (complete vehicles and core components), HENAN THINKER AUTOMATIC EQUIPMENT (603508.SH) (train control and monitoring systems). It is recommended to pay attention to Times Electric (688187.SH) (traction systems), China Railway Signal &amp; Communication (688009.SH) (train control and communication signal systems), Times New Materials (600458.SH) (vibration and noise reduction components), KN (603111.SH) (doors), KTK Group (603680.SH) (interior), Boshen Co., Ltd. (002282.SZ) (wheelsets), China Railway Construction Heavy Industry (688425.SH) (shield machines), and China Railway Industry (600528.SH) (shield machines), etc.
Risk Warning
There are uncertainties in the macro economy and policies; risks of railway investment falling short of expectations, etc

601766

01766

603500

603111

603508

603680

Shenwan Hongyuan released a research report stating that in June, the completed railway fixed asset investment amounted to 113.8 billion yuan, a year-on-year increase of 4.60%, indicating high prosperity in the industry. From January to June, the national railway fixed asset investment reached 355.9 billion yuan, a year-on-year increase of 5.5%. It is expected that in the second half of the year, the bidding volume for high-speed trains and locomotives will significantly increase, possibly exceeding expectations. Key projects include the opening of the high-speed railway from Chongqing to Xiamen, and the railway department will increase night high-speed trains to cope with the peak summer travel season

Zhitong

CRRC

XHSY

HENAN THINKER AUTOMATIC EQUIPMENT

KTK Group

Shenwan Hongyuan: In June, railway fixed asset investment maintained high growth, and it is expected that vehicle bidding will significantly increase in the second half of the year