The Zhitong Finance App learned that China Connect (03969) rose more than 7% in the afternoon. As of press release, it had risen 6.4% to HK$3.16, with a turnover of HK$21.6794 million.
CICC pointed out that the service life of the railway signal system is 10-15 years. China's high-speed rail construction peaked around 2010, and at this stage, some lines have entered the replacement window one after another. The company's product share in the high-speed rail sector is at a high level. We anticipate that the subsequent release of railway signal system replacements will drive the growth of the company's main business.
Galaxy Securities, on the other hand, pointed out that China Pass, as a national team in the field of intelligent traffic control, has a technical extension foundation in low-altitude airspace management. At present, the company has established Tonghao Low Altitude Economy (Hefei) Technology Co., Ltd., started all-round cooperation with Hefei City on key elements such as technology, capital, platforms and standards, and signed a “track+low altitude” strategic cooperation agreement with Suzhou Rail Group. As one of the new directions for the company's future business expansion, the low-altitude economy is expected to become a new growth pole.