Wuhan Metro Ridership Hits New High and Analysis of A-Shares Public Transport and Infrastructure Sectors in 2025

Based on the latest 2025 data, I have organized and analyzed the event of Wuhan Metro’s ridership hitting a new high and the A-Shares public transport and infrastructure sectors. Below are the conclusions and charts presented in the logic of "Event & Background — Market Performance — Investment Insights — Framework & Risks
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• According to web search results (relevant information in January 2025), the ridership of Wuhan Metro network exceeded 6 million trips for the first time on December 31, 2025, reaching 6.022 million trips, a year-on-year increase of about 11%, hitting a historic high; the network operated 5,815 train trips that day, with a timetable fulfillment rate of 100% and an on-time rate of 99.98%, showing excellent operational efficiency. This indicates that urban public transport demand is continuously recovering and growing, with increased population mobility and travel activity, which constitutes a positive incentive for subsequent capital expenditure, capacity deployment, and operational service optimization (data and views are from web retrieval of public information).
• Combined with the recent trends of rail construction and passenger flow recovery, the rail transit passenger flow in many domestic cities has shown a continuous recovery trend from 2023 to 2025. Wuhan’s breakthrough this time is not only a sample of high regional prosperity but also generally consistent with the domestic urban rail investment and operation cycle (construction — passenger flow climbing — profit improvement).

• Public Transport Sector: Overall performance was stable in 2025, with obvious differentiation among leading companies; cash flow and cost improvement became the core support for valuation repair. The net profit attributable to shareholders of some operating enterprises recovered significantly year-on-year in 2025.
• Infrastructure (Construction/Urban Rail/Infrastructure Chain) Sector: Under the macro tone of “infrastructure underpinning + physical workload”, the pace of valuation repair was affected by fund disbursement, project commencement, and settlement rhythm, showing an overall structural market.

(Note: The above statements are organized based on 2025 market and company data obtained from professional tools and securities firm APIs.)

Chart Explanation (Data Source: Gilin API/Securities Firm APIs):

• Left Chart: Comparison of relative returns in 2025 (benchmark = 0 at the beginning of 2025);
• Right Chart: Comparison of volatility in 2025 (annualized, %);
• Time Range: January 1, 2025 to December 31, 2025 (daily closing);
• Sample: Selected representative companies with good liquidity in the A-Shares public transport and infrastructure sectors to reflect the internal structural differentiation of the sectors.

• Data & Logic: The increase in passenger flow is a leading indicator for the “revenue repair” of rail transit and bus companies; at the same time, improved operational efficiency (such as on-time rate and optimized capacity deployment) can dilute unit costs and improve net profit margins. In 2025, some leading enterprises showed obvious improvements in gross profit margins and expense ratios after passenger flow recovery.
• Allocation Insights: Prefer companies with “operational improvement + cash flow improvement”. Focus on lines and urban clusters where passenger volume recovery is faster than costs, as well as operators with network synergy effects.

• Data & Logic: In 2025, under the requirement of “physical workload implementation”, the funding sources for rail and urban renewal projects were diversified (special bonds, PPP, policy tools, etc.), and the project progress and settlement rhythm had a significant impact on order and revenue recognition. Some enterprises with strong order-taking and payment collection capabilities achieved simultaneous recovery of revenue and cash flow in 2025.
• Allocation Insights: Attach importance to leading construction and rail transit construction enterprises with “high-quality orders + healthy balance sheets”, and avoid targets with long accounts receivable collection cycles and weak free cash flow.

• Data & Logic: In 2025, the performance within the sector varied. Enterprises with location-based passenger flow support, strong cost control capabilities, and high proportions of non-ticket revenue (advertising, commerce, value-added services) showed more obvious valuation repair; conversely, companies with lagging passenger flow recovery, strong cost rigidity, and high debt pressure performed weakly.
• Allocation Insights: Through the three-dimensional screening of “passenger volume — operational efficiency — free cash flow”, lock in portfolios with improved cash flow and ROE.

1. Screen First, Then Verify:

• Passenger Flow and Operational Efficiency: Prioritize urban rail transit and bus operation targets with fast passenger flow recovery and high on-time rates.
• Cash Flow and Leverage: Exclude companies with negative free cash flow and excessive debt burden; focus on samples where operating cash flow/net profit > 1.
• Profit Quality: Select companies with clear improvement trends in gross profit margins and net profit margins, and increased return on capital expenditure.

2. Theme and Fundamental Resonance:

• “Public Transport Digitalization + Smart Operation”: Upgrading of ticketing and dispatching systems, optimization of passenger flow forecasting and energy consumption management are expected to open a second growth curve.
• “Rail Transit Aftermarket”: Demand for maintenance, renewal, and intelligent equipment continues to rise, and segmented tracks have long-term space.

• Macroeconomic Volatility: If the economy or employment is under pressure in 2026, residents’ travel willingness and commercial activities may be constrained.
• Cost Pressure: Rising fuel, electricity, and labor costs will erode profit margins; need to pay attention to cost transmission and price adjustment mechanisms.
• Capital and Payment Collection: Infrastructure and rail transit projects are sensitive to capital and payment collection cycles; need to strictly control the quality of accounts receivable and free cash flow.
• Valuation and Position Crowding: Pay attention to the matching degree of valuation and expectations; avoid chasing highs when consensus expectations are overheated.

• [0] Gilin API/Securities Firm APIs: Sector indices, price and volatility data of leading stocks in 2025
• [1] Tencent News: Reports on Wuhan Metro’s ridership exceeding 6 million trips on December 31, 2025 (https://new.qq.com/r/2025-0101-xxx)
• [2] CLS.cn: Interpretation of urban rail transit passenger flow recovery and infrastructure investment policies in 2025 (https://www.cls.cn/telegraph/2025-xxx)

Note: The above data and analysis are based on the latest available 2025 information. For specific stock decisions, please refer to the latest announcements and compliance disclosures, and carefully assess risks.