China Galaxy Securities said that with continued strong railway passenger traffic and steady growth in freight traffic, China Railway Group maintained a high level of tenders for various types of railway vehicles this year. Since this year, China Railway has tendered a total of 70 EMUs with a speed of 350 kilometers per hour, 67.375 groups with a speed of 160 kilometers per hour, 34,800 trucks, and 398 locomotives. According to our analysis of routes, the average annual new production mileage is expected to exceed 3,000 kilometers in 26-28, of which 27 years will be the peak of traffic, and tenders for new EMU vehicles are expected to remain high for the next three years. At the same time, EMU maintenance progresses according to the repair process and enters the release cycle starting in 24 years. We estimate that the average annual advanced repair market space is expected to exceed 50 billion yuan during the 15th five years; we continue to be optimistic that the boom in railway equipment will continue.

China Galaxy Securities said that with continued strong railway passenger traffic and steady growth in freight traffic, China Railway Group maintained a high level of tenders for various types of railway vehicles this year. Since this year, China Railway has tendered a total of 70 EMUs with a speed of 350 kilometers per hour, 67.375 groups with a speed of 160 kilometers per hour, 34,800 trucks, and 398 locomotives. According to our analysis of routes, the average annual new production mileage is expected to exceed 3,000 kilometers in 26-28, of which 27 years will be the peak of traffic, and tenders for new EMU vehicles are expected to remain high for the next three years. At the same time, EMU maintenance progresses according to the repair process and enters the release cycle starting in 24 years. We estimate that the average annual advanced repair market space is expected to exceed 50 billion yuan during the 15th five years; we continue to be optimistic that the boom in railway equipment will continue.