China's Guangshen Rail nine-month revenue rises 4.5%, profit falls

Overview

• China railway operator's nine-month revenue rose 4.5% yr/yr to RMB 22.2 bln

• Net profit attributable to shareholders fell 6.7% yr/yr to RMB 1.36 bln

• Revenue growth driven by rebound in passenger transportation demand

Outlook

• Company did not provide specific guidance for future quarters or full-year performance in its press release

Result Drivers

• PASSENGER DEMAND REBOUND - Co said revenue growth was driven by a continued rebound in passenger transportation demand

• COST AND EXPENSE CONTROL - Co said it maintained strict control on cost, fees and expenses, resulting in a lower increase in cost and expenses compared to operating income

• EXTRAORDINARY ITEMS IMPACT - Co said profit and EPS declined due to gains from extraordinary items, such as disposal of non-current assets, in the year-ago period

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the passenger transportation, ground & sea peer group is "buy."

• Wall Street's median 12-month price target for Guangshen Railway Co Ltd is CNY3.71, about 18.4% above its October 29 closing price of CNY3.13

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 27 - China's industrial profit growth picks up amid deepening economic divergence

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• Oct 27 - Guangdong Investment 9M revenue rises on water resources strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)