The most lucrative segment of China’s high speed railway system filed it IPO application with CSRC.
It announced its preparation of IPO back in February.
The 1,318km railway began construction in April 2008 and started operation in June 2011.
| 2019 (Jan – Sep) | 2018 | 2017 | 2016 | |
|---|---|---|---|---|
| Passenger Revenue (‘0000 ¥) | 1,204,204.99 | 1,579,069.55 | 1,556,737.53 | 1,418,926.44 |
| PassengerMiles (billion km) | 25.86 | 34.46 | 34.24 | 31.83 |
| Unit Price (¥ per km) | 0.466 | 0.458 | 0.455 | 0.446 |
| Occupancy % | 79.91% | 81.64% | 80.18% | 73.38% |
Unit price is consistent with experiences, e.g. Nanjing South to Shanghai Hongqiao is ~295km and costs ¥134.5, which translates to ¥0.456 per km in unit price.
For occupancy rate, there is some seasonality fluctuation (Jan – Sep vs. Oct – Dec).
Total revenue breakdown:
Income Statement:
Profitability is insane.
| Total Revenue (‘0000) | 2,500,191.65 | 3,115,842.16 | 2,955,540.94 | 2,625,761.72 |
|---|---|---|---|---|
| COGS (‘0000) | 1,185,571.50 | 1,629,918.30 | 1,593,526.42 | 1,514,366.73 |
| Gross Margin | 53% | 48% | 46% | 42% |
| Net Income (‘0000) | 1,269,335.26 | 1,366,419.72 | 1,207,143.13 | 902,434.75 |
| NI Margin | 51% | 44% | 41% | 34% |