Guangzhou-Shenzhen Railway (601333) 2019 Interim Report Comment: The growth of the first half of the year increased by 16.

The 5% Q2 growth rate is nearly 80% slightly higher than expected.

Guangzhou-Shenzhen Railway (601333) 2019 Interim Report Comment: The growth of the first half of the year increased by 16.

The 5% Q2 growth rate is nearly 80% slightly higher than expected.

The company released the semi-annual report, 1) The company realized operating income of 101 in the first half of the year.

870,000 yuan, an increase of 6 in ten years.

92%, realizing net profit attributable to mother 7.

62 ppm, an increase of 16 in ten years.

52%, deducting non-net profit 7.

5.7 billion, an increase of 13 previously.


2) The company’s operating income was 50 in the second quarter.

71 ‰, an increase of 9% in ten years, attributable net profit3.

72 trillion, a 78-year increase.

7%, slightly more than expected.

Q1 revenue and profit growth rate was 4.

9% and above -12.


3) Looking at the operating data: The overall passenger flow is basically flat, and the Guangzhou-Shenzhen-Hong Kong high-speed rail branch company’s through train business has limited impact.

The report totals that the company transported 43.73 million passengers, an increase of 0 each year.

28%, affected by the Guangzhou-Shenzhen-Hong Kong high-speed rail, the through train business transports passengers to and from 38.

99% to 120.

80,000 people, but because of their relatively small share, the impact is limited. The Guangzhou-Shenzhen intercity transportation has 20.41 million people, a long-term growth of 7.

2%, 221.1 million long-distance buses, exceeding the decline of 2.


Revenue Structure: Road network clearing and other transportation services grow each year.

66%, contributing to the main income increase.

1) Business structure: passenger transportation, freight transportation, road network clearing and other transportation services. Other business income is 40.

76, 9.

18, 47.

4 and 4.

5.3 billion, accounting for 40%, 9%, and 46 of total revenue.

5% and above 4.

5%, increase by 1 each year.

6%, 6%, 11.

7% and 11.


2) Passenger transportation revenue: 40.

76 ppm, an increase of ten years.

59%, of which Guangzhou-Shenzhen Intercity 15.3 ppm, an increase of 11 years.

62%, passenger flow increased by 7 in ten years.

15%; through train revenue 1.

7 billion, 35 from the previous decade.

6%, average since July 10, 19, due to the adjustment of the national railway train map, the number of trains on the Guangzhou-Kowloon through train has been adjusted from 11 to 8 pairs, which is expected to increase in the second half of the year; income from long-distance buses is 20.

8.7 billion, down by 1 every year.

79%, passenger flow decreased by 2.


3) Revenue from road network clearing and other transportation services47.

40 billion, an increase of 11.

66%, accounting for 46.

5%, which contributes to the main income increase.

Road network clearing services20.

5.3 billion, an annual increase of 7.

24%, mainly due to the implementation of incremental freight operations, increased cargo transportation; other transportation services revenue26.

8.7 billion, an increase of 15 in ten years.

3%, of which railway operations are 17.

500 million, an increase of 10 in ten years.

7%, other services 9.

3.4 billion, an increase of 25% over the same period, mainly due to the increase in the workload of railway operations and passenger services provided by the company.

The gross profit margin increased by up to 1 percentage point.

1) Operating costs 89.

800 million, an annual increase of 5.

8%, slower than income 6.

The 9% growth rate drove the company’s gross profit margin to double by 11 times.


Wages and benefits, equipment leasing and service fees, and fixed asset depreciation increased by three.

15%, 3.

3% and 3.

6%, lower than the total cost growth rate, accounting for 76% in total

In addition, in the current period, the fifth-level repairs of the EMU and the additional opening of the EMU, etc., the incremental costs decreased in the same period last year.

The land collection and storage advance receipts are received in batches, and the revenue is recognized after all the completion.

In April 2018, the Group and Guangzhou Land Development Center visa irrevocable transfer agreement, the transfer of land (Shipai yard), the price is 13.

05 trillion US dollars, as of the end of the reporting period, asset transfers have been completed, confirmed that the pre-sale of land receipts and savings is 7.

200 million (5 at the end of 18).

8.7 billion), it is expected that the revenue will be recognized after all the accounts are reached, and the materials can reach more than 500 million points.

In addition, the company’s Guangzhou East Cargo Yard also broke 天津夜网 through the pre-commissioning agreement for comprehensive development, and land development went further.

Investment suggestions: 1) It is expected that Guangzhou-Shenzhen-Shenzhen Intercity will be opened for 9 months. There may be a diversion of the company ‘s customer base, but it is still expected to be operated by the company. Therefore, the revenue from road network clearing and other transportation services can be confirmed. We analyze this.The opening of road property has limited impact on the company’s profit.

2) Assuming that the Shipai Yard recognizes 5 trillion gains in asset disposal during the year, the estimated net profits attributable to 19-21 are 14, 12 respectively.

8 and 13.7 trillion, corresponding to PE16, 17, and 16 times, the company’s current PB is only 0.

76 times, at a historical low, “strong push” level.

Risk Warning: The land transfer and deposit progress is less than expected, the railway reform is less than expected, and the road product diversion is better than expected.