601006 CH

Daqin Railway Co Ltd

Industrial/Transportation


Presented:03/11/2015
Price:CN¥10.38
Cap:$24.60B
Current Price:CN¥6.64
Cap:$19.34B

Presented

Date03/11/2015
PriceCN¥10.38
Market Cap$24.60B
Ent Value$24.40B
P/E Ratio9x
Book ValueCN¥5.49
Div Yield4.2%
Shares O/S14,866.79M
Ave Daily Vol140,260,000
Short IntN/A

Current

PriceCN¥6.64
Market Cap$19.34B
Daqin Railway Co., Ltd. provides railway transportation services in the People’s Republic of China. It primarily transports coal products from northern Shanxi and western Inner Mongolia to eastern areas of China; and transports coke, steel, and ores. The company also offers railway passenger transportation services. The company was founded in 2004 and is based in Taiyuan, the People’s Republic of China.

Publicly traded companies mentioned herein: Aurizon Holdings Limited (AZJ AU), Daqin Railway Co Ltd (601006 CH)

Highlights

The presenter is long shares of Daqin Railway, which is “a massive infrastructure asset” (the country’s largest railway) in China. Daqin is the dominant steam coal transporter (at 800 million tonnes per year) in the country, and up until now the domestic tariff structure did not afford the company any pricing power. However, this situation is now changing and there are indications that the Chinese government (which owns 60% of the railway) may allow/ support a more liberalized pricing market.

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Idea Discussion

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