Analysis of Investment Opportunities in Rail Equipment and Infrastructure Companies from 33% High-Speed Rail Mileage Growth

Based on the background of the 33% growth in high-speed rail operating mileage you provided, I will systematically analyze the impact of this infrastructure investment on the investment opportunities of rail equipment manufacturing and infrastructure industry chain companies.

During the 14th Five-Year Plan period, China’s railway construction achieved remarkable results [0]:

• National Railway Operating Mileage
  : Increased from 146,300 km to 165,000 km (12.8% growth)
• High-Speed Rail Operating Mileage
  : Increased from 37,900 km to 50,400 km (
  32.98% growth
  )
• Global Position
  : Built the world’s largest high-speed rail network

The large-scale expansion of the high-speed rail network means:

• The construction cost per km of high-speed rail is approximately RMB 100-200 million
• The 12,500 km of new high-speed rail corresponds to an
  investment scale of RMB 1.25-2.5 trillion
• Sustained equipment renewal and maintenance demand form a long-term market

According to brokerage data, China CRRC, as the world’s largest rail transit equipment manufacturer, has obvious advantages [0]:

Financial Indicator	Value	Analysis
Market Capitalization	USD 193.1 billion	World’s leading rail transit equipment manufacturer
Current Stock Price	RMB 6.82	Cumulative increase of 29.41% from 2024 to 2025 [0]
P/E Ratio	12.96x	Valuation is in a reasonable range
ROE	8.89%	Stable profitability
Net Profit Margin	5.44%	Good profit margin level

:

• EMU Orders
  : 33% growth in high-speed rail mileage directly drives increased demand for EMUs
• Technological Advantages
  : Has core technologies in high-speed trains and urban rail transit
• Overseas Expansion
  : Railway construction in Belt and Road countries brings export opportunities
• Stock Price Performance
  : 29.41% increase from 2024 to 2025, reflecting market recognition of the industry’s prospects [0]

• Market Capitalization: USD 5.78 billion
• Focuses on manufacturing core railway parts such as axles and wheelsets
• Stock price increased by 33.15% from 2024 to 2025, with excellent performance [0]

According to the latest data [0]:

Financial Indicator	Value	Analysis
Market Capitalization	USD 133.8 billion	Infrastructure industry giant
Current Stock Price	RMB5.41	Low valuation
P/E Ratio	5.38x	Highly attractive valuation
P/B Ratio	0.42x	P/B ratio below 1, undervalued
ROE	7.08%	Stable profitability

:

• New Line Construction
  : Directly benefits from new high-speed rail line construction projects
• Valuation Advantage
  : P/E of only5.38x, P/B of only0.42x, high margin of safety
• Order Guarantee
  : Sufficient backlog orders, large revenue scale (recent quarterly revenue of USD263.56 billion) [0]
• Dividend Income
  : Low valuation is often accompanied by higher dividend yield

• Market Capitalization: USD18.17 billion
• P/E:12.58x, in a reasonable range
• Mainly engaged in manufacturing of railway special equipment and materials [0]

• The 33% growth in high-speed rail mileage is an
  achieved construction result
  , and related investments and orders have been implemented
• Subsequent operation and maintenance, equipment renewal will bring
  sustained demand
• National support policies for railway construction are continuous

• Equipment Manufacturing (China CRRC)
  : Reasonable valuation (PE12.96x), good growth
• Infrastructure Construction (China Railway Group)
  : Extremely low valuation (PE5.38x, PB0.42x), large room for valuation repair
• Parts (Jinxi Axle)
  : High elasticity, has recorded a 33% increase [0]

High-speed rail construction drives the entire industry chain:

• Upstream
  : Steel, non-ferrous metals, new materials
• Midstream
  : Equipment manufacturing, parts, electrical systems
• Downstream
  : Operation and maintenance, information systems

According to online search information [1]:

• The quota of local government special bonds for infrastructure investment has dropped to a six-year low
• About RMB1.38 trillion of new special bonds in2024 will be used to resolve implicit debt
• The quota for infrastructure is about RMB3.02 trillion, the lowest level since2019
• Reflects that infrastructure investment has decreased in policy priority

• Traditional infrastructure such as railways and highways in some regions is nearly saturated
• Investment return rate shows a downward trend [1]
• Future infrastructure investment will focus more on efficiency than scale

• Local governments face stricter budget constraints
• Debt resolution requires a lot of fiscal resources
• May affect the investment intensity of new projects [1]

• China CRRC (601766.SS)
  : Core target, high certainty of benefit
  • Reasonable valuation (PE12.96x)
  • Already has a33% increase verifying market recognition [0]
  • High technical barriers, good competitive landscape

• China Railway Group (601390.SS)
  : Valuation repair opportunity
  • Extremely low valuation (PE5.38x, PB0.42x)
  • Sufficient margin of safety
  • May have a higher dividend yield

• Growth Investors
  : Focus on equipment manufacturers like China CRRC
• Value Investors
  : Focus on low-valuation infrastructure stocks like China Railway Group
• Balanced Allocation
  : 60% equipment manufacturing +40% infrastructure construction

• Equipment Renewal Demand
  : The first batch of high-speed rail has been in operation for over 10 years, entering the renewal cycle
• Intelligent Upgrade
  : Smart railways and autonomous driving systems bring new growth
• Overseas Market Expansion
  : Railway construction demand in Belt and Road countries
• Maintenance Service Market
  : Operation and maintenance are long-term stable cash flow sources

• Closely monitor changes in government infrastructure investment policies
• Track the progress of local government debt resolution
• Monitor the approval pace of new line construction

The33% growth in high-speed rail operating mileage is a

, which constitutes a substantial positive for rail equipment manufacturing and infrastructure industry chain companies:

Investment Opportunity	Rating	Key Logic
China CRRC	⭐⭐⭐⭐	Industry leader, high certainty, reasonable valuation
China Railway Group	⭐⭐⭐⭐	Extremely low valuation, high margin of safety, large room for repair
Jinxi Axle	⭐⭐⭐	High elasticity, has recorded significant growth
China Railway Industry	⭐⭐⭐	Special equipment, stable benefit

• Continuous progress in new high-speed rail line construction
• Active bidding and procurement of EMUs
• Release of equipment renewal demand
• Growth in overseas orders

• Further slowdown in infrastructure investment growth
• Increasing debt pressure on local governments
• Tightening of fiscal policies
• Slowdown in project approval

• Short-term
  : Already has significant growth, not suitable to chase high, wait for correction opportunities
• Mid-to-long-term
  : Industry fundamentals are positive, can deploy high-quality targets in batches
• Strategy
  : Focus on valuation repair opportunities (China Railway Group) and long-term growth opportunities (China CRRC)

:
Although high-speed rail construction achievements are remarkable, it should be noted that infrastructure investment as a whole faces fiscal constraints [1]. The investment strategy should shift from “scale expansion” to “quality improvement”, focusing on:

1. Equipment manufacturers with core technical barriers
2. Infrastructure leaders with low valuation and sufficient margin of safety
3. Global enterprises that can expand overseas markets

[0] Jinling API Data (Stock quotes, company financial data)
[1] Bloomberg - “China’s Infrastructure Investment Special Bond Quota Drops to Six-Year Low” (2025 Infrastructure Investment Trend Analysis)
[2] National Railway Administration - “14th Five-Year Plan Railway Construction Achievement Report” (High-speed rail operating mileage data)