29 Oct 2019
China’s Beijing – Shanghai high-speed rail operator is reportedly more profitable than one of the major technology companies.
The operator is now looking to be listed on the stock market as it submitted an application. At the end of last week, the China Securities Regulatory Commission stated that the Beijing – Shanghai High Speed Railway reported a net profit of 9.5 billion yuan, equivalent to $1.3 billion USD during the period between January and September.
Therefore, it makes us almost 38% of its revenue, making it more profitable than the iPhone producer Apple and China’s most famous baijiu brand, Kweichow Moutai.
In 2018, it reported a net profit of 10.2 billion yuan ($1.4 billion USD), which conveyed a 13% rise from the previous year. The China Securities Regulatory Commission showed that it plans to expand by purchasing other railway projects in the southeast of China. The country’s Anhui province is expected to be the target location.
Analysts explained, “There hasn’t been a listing of a company from China’s railway sector in a very long time. This is certainly a good development for china’s capital markets and for the industry.”
“The route is China’s most active, with high growth prospects, and is a corridor for rapidly growing traffic volumes. But if there is a volatility in the macroeconomy, it could have an adverse effect on the company’s performance.”