China

Daqin Railway Posts 10.9% Increase in 1H Net Profit

This article was originally published on August 27, 2014 at 10:49 pm

Summary:

  • Daqin Railway (CH: 601006) has posted a 10.85% increase in net profit to RMB 7.2 billion for the first half of the year, reports NetEase Finance.
  • The company posted a 7.4% increase in revenue to RMB 26.4 billion.
  • EPS for the first half of 2014 was RMB 0.48.

Why It Matters:

  • Daqin Railway’s main business is railway cargo transportation, especially coal. During the first half of the year, overall railway cargo transportation increased 2.2% over the same period last year to 224.8 million metric tons. Daqin Railway has a 15% market share, and the company also has a 21.5% share of the railway coal transportation niche market.
  • The company says that as the Chinese economy is cooling down and the government is implementing stricter environmental requirements, the demand for coal is decreasing. Therefore, Daqin Railway is expanding its other business sectors and has started cargo transportation of other products, including steel and aluminium.
  • A significant amount of coal is transported to ports, and Daqin Railway is also working closely with port authorities to improve operational efficiencies. This includes updating railroad to port transportation in order to allow specially designed trucks to enter ports.