China Railway (00390) is now down nearly 5%. As of press release, it is down 4.87% to HK$3.91, with a turnover of HK$121 million.
The Zhitong Finance App learned that China Railway (00390) is now down nearly 5%. As of press release, it is down 4.87% to HK$3.91, with a turnover of HK$121 million.
According to the news, China Railway announced results for the first quarter of 2024, with operating revenue of 265,011 billion yuan, down 2.56% year on year; net profit attributable to shareholders of listed companies was 7.481 billion yuan, down 5.04% year on year. Guosheng Securities pointed out that the company's performance was slightly pressured, mainly due to factors such as slow issuance of localized bonds and special bonds in Q1, where the physical infrastructure workload fell short of expectations. Combined with a sharp contraction in the real estate business, total revenue declined; profits in the resource utilization sector declined, leading to a 0.33 pct year-on-year decline in the comprehensive gross margin of a single quarter.
The bank said that recently, the Development and Reform Commission stated that it will strengthen project supervision. At the same time, in terms of funding sources, it plans to issue an additional 112.92 billion special bonds in the second quarter, a sharp increase of 78% over Q1. Combined with special treasury bonds and funding from the central budget, infrastructure funding is expected to improve significantly. As of the end of 2024Q1, the company's unfinished contract amount was 6.2 trillion yuan, five times the revenue of 2023, with plenty of on-hand orders, and undertook most of the projects. It is expected to be the main investment in additional financial capital. Benefiting from improvements in infrastructure capital from the second quarter, revenue and performance growth is expected to accelerate markedly.