GUANGSHEN RAIL 2026 Interim: Revenue Up 5.9%, Net Profit Rises 7.3%, Passenger Business Leads Growth

Bulletin Express
Yesterday

Guangshen Railway Company Limited (abbreviated as “GUANGSHEN RAIL”) released its unaudited results for the six months ended 30 June 2026.

Revenue climbed to RMB 14.79 billion, an increase of 5.87% year-on-year, while operating costs rose 4.33% to RMB 13.06 billion. Net profit attributable to shareholders reached RMB 1.19 billion, up 7.32% from the same period last year, pushing basic EPS to RMB 0.168. Net profit after extraordinary items advanced 12.24% to RMB 1.19 billion.

By segment, passenger transportation income grew 10.69% to RMB 6.22 billion, benefiting from higher train frequencies on Guangzhou-Shenzhen inter-city, long-distance and Hong Kong through-train services. Freight revenue fell 4.93% to RMB 0.80 billion amid softer demand for bulk cargo. Railway network usage and entrusted transportation services contributed RMB 7.06 billion, a 5.37% rise. Revenue from other businesses (train repairs, on-board catering, leasing etc.) decreased 12.15% to RMB 0.71 billion.

Operating profit improved 18.25% to RMB 1.64 billion, supported by tighter cost control and higher utilisation. The passenger sector’s volume grew 2.42% to 34.43 million trips; freight tonnage declined 4.81% to 7.28 million tonnes.

Cash flow from operations totalled RMB 1.42 billion, down 22.19%, mainly due to higher procurement and staff costs. Total assets stood at RMB 37.24 billion, edging up 0.80%. Net assets attributable to shareholders reached RMB 28.96 billion, with a gearing ratio of 22.34%. The company held cash and bank balances of RMB 4.73 billion and reported no interest-bearing bank borrowings.

The board proposed no interim dividend and confirmed the previously approved RMB 100 million A-share buyback programme; 9.92 million shares had been repurchased by 17 July 2026 for about RMB 30.00 million.

Key risks highlighted include macro-economic headwinds, regulatory adjustments, transportation-safety challenges, intensified inter-modal competition and financial market volatility.

Management expects China’s resilient economic momentum to underpin continued demand for rail services in H2 2026. Strategic focus areas include passenger-service upgrades, freight logistics transformation, safety reinforcement, cost discipline and ongoing corporate-governance enhancements.

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