Beijing-shanghai high-speed rail listing: no financing for reform

Release Time:2020-04-03 Source:

On Nov. 14, the much-anticipated IPO of the beijing-shanghai high-speed railway was a success. It is understood that the beijing-shanghai high-speed railway filed its application on October 22, only 23 days after its initial filing, breaking the previous record of 36 days set by foxconn. According to wind data, currently there are 423 enterprises in IPO queue (including accepted, inquired, reported, disclosed and updated), among which 159 are to be listed on the main board, 79 are to be listed on the small and medium boards, 164 are to be listed on the growth enterprise board, and 21 are to be listed on the science and innovation board. What are the characteristics of the high-speed railway between Beijing and Shanghai? Heavy responsibility: as a traditional industry, railway has its particularity. The long return period is one of the characteristics of railway construction. It is understood that the income of the railway bureau includes passenger transport, freight and other income. It is obviously not enough to recover the cost and pay off the debt, which makes the debt burden of railway construction and operation always exist. In 2013, the ministry of railways was abolished, the government and enterprises of railways were separated, and the China railway corporation was established. Since 2017, the railway system has carried out the reform of the corporation system of the railway bureau, the reform of the internal organization system of the railway corporation, the reform of the subordinate non-transport enterprises, and the reform of the internal organization system of the railway bureau group companies. By 2019, the railway reform has entered a crucial year. In February this year, the beijing-shanghai high-speed railway officially launched its listing plan. In June, the railway was further marketized, and China railway corporation was restructured and renamed China railway group co., LTD. (China railway group). The IPO of the beijing-shanghai high-speed railway is a symbol of the accelerating pace of China's market-oriented railway reform. The former official in charge of China railway corporation once said that the launch of the listing of the beijing-shanghai high-speed railway is one of the important measures taken by China railway corporation to actively promote the shareholding reform of state railway enterprises, and it is a concrete action to vigorously develop the mixed ownership economy and promote the optimization and adjustment of the capital structure of railway enterprises. Tianfeng securities research daily mentioned that the listing of the beijing-shanghai high-speed railway marks an important step forward in the securitization of China's railway assets, which is expected to boost sentiment in the railway sector. At present, all the local road bureaus have profitable assets, but only three listed platforms. Guangshen railway company is also a major passenger transport business, and the large shareholder's asset imagination space is large, which is considered by tianfeng securities to have the highest degree of correlation with the listing of beijing-shanghai high-speed railway. Daqin railway is of high dividend yield and has the value of risk aversion. Tielong logistics operation of railway special container business, business development space is large. Big project: the beijing-shanghai high-speed railway, with a total asset size of 187.08 billion yuan and an issue proportion of less than 15%, is a well-deserved giant. The IPO of such a company will undoubtedly have a huge impact on the market. Although no clear amount has been disclosed, according to the prospectus, the funds raised by the beijing-shanghai high-speed railway will be fully used to acquire 65.0759% of the shares of jingfu anhui company after deducting the issuing fees. The purchase consideration is 50 billion yuan, and the difference between the acquisition consideration and the raised funds will be settled through self-financing. This provides great imagination for the scale of the money that could be raised for the beijing-shanghai line. In addition, in this public offering, the beijing-shanghai high-speed railway limited the shares to 7.557 billion shares, and the issued shares accounted for no more than 15% of the total share capital after the offering, which is larger than the normal 10%. Positioning problem: by the inquiry by the securities and futures commission per capita assets under management in the beijing-shanghai high-speed railway after the prospectus disclosure, securities regulatory commission on January 4th on the beijing-shanghai high-speed railway 54 problem, put forward the IPO application documents including the issuer to asset management companies rather than high-speed passenger transport company, main business are accurate, competition, etc. The beijing-shanghai high-speed railway, for its part, updated its prospectus on Nov. 6, adding 116 pages of explanatory notes in response to inquiries from the China securities regulatory commission. In many problems, the beijing-shanghai high-speed railway 187.08 billion yuan of total assets is only 67 employees of problems the most attention, securities regulatory commission (CSRC) to illustrate the beijing-shanghai high-speed railway whether its in the asset management company, rather than to the high-speed rail passenger transport company, the core competitive ability, and whether there is a complete business system, to meet the requirements of starting to complete with market-oriented operation independently. In this regard, the beijing-shanghai high-speed railway company said that the company's per capita asset management scale is large, which is suitable for the use of entrusted transport management mode, but the company still undertakes the quality assessment, information feedback, quality improvement and other professional work in the transport process. It is understood that the main business of the beijing-shanghai high-speed railway mainly includes :(1) providing high-speed rail transport services and charging ticket prices for passengers who take the train; (2) when trains operated by other railway transport enterprises are running on the beijing-shanghai high-speed railway, they shall provide such services as line use and overhead contact network use and charge corresponding fees. The income from ticket sales and online use of 12306 will be concentrated in the fund clearing center of China railway group and settled on a monthly basis at the beijing-shanghai high-speed railway company. The revenue from the automatic ticket machines at the station shall be paid directly to the beijing-shanghai high-speed railway company by the railway bureau group. Entrust give full play to the various railway transportation management in such aspects as personnel, equipment, technology and experience of advantage, such not only can reduce and avoid the beijing-shanghai high-speed railway to form various aspects of the problems of the team, also can effectively reduce operating costs, improve quality and efficiency of transportation, also avoid the waste of resources, and so on and so forth. According to news reports interface, a trunk railway lines in southwest company insiders said, the railway company is not in charge of construction and management of specific work, mainly for capital and financial operation, work content for more of the company's personnel supervision and coordination of the actual construction and operation unit, the actual voice is still in the transtition group and subordinate to usd. The beijing-shanghai high-speed railway, founded on January 9, 2008, was the first high-speed railway in China to turn a profit. According to the public information shows that the beijing-shanghai high-speed railway on April 18, 2008 officially started construction; It was opened to traffic on June 30, 2011. The main line is 1,318 kilometers long, making it the longest high-speed railway in the world and with the highest technical standards. The beijing-shanghai high-speed railway is constructed with world-class high-speed railway technology, with bullet trains running on the whole line. The designed target speed is 350 km/h, and the minimum train tracking interval in the designed range is 3 minutes. As one longitudinal of China's "four vertical and four horizontal" passenger transport network, it is the artery connecting Beijing and Shanghai, bohai economic circle and Yangtze river delta economic circle. It has the advantages of super road network and location, so it has strong profitability. According to the prospectus disclosed by the beijing-shanghai high-speed railway, the company's earning power is quite bright. The net profits of the beijing-shanghai high-speed railway company from 2016 to 2018 were 7.903 billion yuan, 9.053 billion yuan and 10.248 billion yuan, respectively. In the first three quarters of this year, the company achieved a net profit of 9.52 billion yuan and a total revenue of 25.02 billion yuan, among which passenger transportation and providing road network services accounted for 48.16% and 50.96% of the total revenue respectively. According to the disclosed data for the first three quarters of this year, the net profit margin of the beijing-shanghai high-speed railway is more than 38%, even higher than wuliangye's net profit margin of 36.12% (semi-annual data). In terms of gross profit margin, during the reporting period disclosed in the prospectus, the gross profit margin of the company's various businesses (passenger transportation, provision of road network services and other businesses) was on the rise. In the first three quarters of this year, the total operating profit margin of the projects was 52.58%. However, tianfeng securities also pointed out in the research report the current operating difficulties of the beijing-shanghai high-speed railway: how to balance the proportion between the line car and the cross-line car within the limited production capacity. If the production capacity of the line car can be fully released, the company's long-term profit ceiling will be further opened.