JPMorgan released a research report stating that following the positive signals from China Railway Group at the beginning of the year, it is expected that investment in Railway Infrastructure in China will continue to grow. The bank anticipates that total railway capital expenditure in the mainland will reach a historic high of over 90 billion yuan this year, with the budget shifting towards the procurement of railroad equipment.
The bank believes that CRRC Corporation (01766) and TIMES ELECTRIC (03898) are in a favorable position to seize the opportunities from the growth in capital expenditure, both receiving a "Shareholding" rating, with their procurement pace aligning with the budget cycle of China Railway Group. In terms of infrastructure, the bank indicated that China Railway (00390) is the market leader in the field of Railway Infrastructure and is expected to capture market share while maintaining traditional business.
