The Zhitong Finance App learned that China Connect (03969) rose more than 8%. As of press release, it had risen 7.02% to HK$3.2, with a turnover of HK$346.58 million.
GF Securities pointed out that the introduction of large-scale equipment renewal policies means that rail transit will directly benefit as an industry with limited long-term capital expenditure growth. Currently, the industry is at the beginning of a new cycle of large-scale renewal and replacement. According to our estimates, the potential market space for complete vehicles to be replaced exceeds 45 billion yuan per year, and the market space for advanced repairs exceeds 10 billion yuan per year. According to the company's annual report, CRRC's maintenance revenue in '22 accounts for about 40% of railway business revenue. After stock, the market will become a driving force for rail transit companies' performance growth, and orders for advanced repairs that began in '23 have also begun to be released at an accelerated pace.
Guoxin Securities, on the other hand, pointed out that the central government encourages large-scale equipment upgrades, accelerates the promotion and application of new energy locomotives, raises the level of green construction in railway engineering, vigorously develops intelligent train scheduling and assembly technology, and enhances the digital and intelligent level of railway operation and maintenance management, operation and maintenance, which will help to upgrade rail transit system information system equipment, refrigeration systems, etc., and targets related to the rail transit equipment and maintenance market are expected to usher in new growth opportunities. The focus is on recommending China Pass, etc.