brianjason

1 Comment

    • Beijing Olympics Investing: Think Travel Stocks [view article]
      Actually, while the RR between HK & Guangzhou is their bread and butter, 50% of their total passengers come from the long distance trains but this accounts for only 36% of revenue. The reason is because the HK/SZ trains get better prices/km. They also bought the guangping line (basically tripled their track length) from the parent company about a year ago. That goes up into the middle of China close to Changsha. In addition, they run trains up to beijing and shanghai. While they don't own the track, they can still use it.

      I don't disagree with the over valued part.. but the reasons you give up there are not correct. You'd have a better reason noting that their trains are almost always 100% packed and the only way they can surprise the market on the upside would be if the government allowed them to hike ticket prices. This is not likely to happen because rail travel is how the average chinese travel and the consumer is already being killed by higher food prices. You might have also commented about the 1Q results which were were about 10% below consensus because of the Feb snow storm.

      short away...       May 03 03:08 AM
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