After making profits for 1.4 billion dollars in 2018, the high-speed rail operator Beijing-Shanghai plans the stock exchange listing
High speed is not only a fast and green way to get around, but also a great way to make profits for companies. An extraordinary case is the company that manages the Beijing-Shanghai section of China’s high-speed rail network, which has even submitted a formal application to float on the stock market
Beijing-Shanghai High-Speed Railway Co, According to the deposit, published by the China Securities Regulatory Commission on Friday, runs a 1,300 km (807 miles) line and recorded a net profit of 9.5 billion yuan (1.3 billion of dollars) in the first nine months of the year.
Earnings are among the most profitable in the world. With these gains, the company is more profitable than both Apple Inc and Kweichow Moutai. The railway company reported full-year net income of 10.2 billion yuan in 2018, up more than 13% compared to 2017, according to the file.
In addition to China Railway, the company’s other shareholders include Ping An Asset Management
According to the dossier, a listing on the Shanghai stock market is possible to raise funds to purchase other railway projects in the southeastern province of Anhui. The plan suggests that China State Railway Group, which holds a 50% stake in the high-speed operator through its investment arm, wants to use its share of profits to support less profitable lines.
The profitability of the Beijing-Shanghai line – on which trains travel at speeds up to 350 km / h (217 miles per hour), reducing travel time between the two cities to 4 and a half hours – highlights the success of the railway network to high speed in the rich regions of China where the demand for luxury and comfort is high.
Beijing-Shanghai High-Speed Railway Co has only 67 employees
A first-class ticket for a one-way trip costs 933 yuan (US $ 130), roughly the same as an airline ticket, although standard seats cost less than 553 yuan.
In 2018, the line carried 192 million passengers, equal to about 6% of all those travelling by high-speed rail in the country. Wu Kan, investment manager at Soochow Securities in Shanghai, said: “There is no list of a Chinese railway company for a long time. This is certainly a good development for China’s capital markets and industry
“The route is the busiest in China, with high growth prospects and a corridor for rapidly growing traffic volumes. But if there is volatility in the macroeconomy, it could have a negative effect on the company’s performance” he added
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