Beijing-Shanghai High-Speed Railway Launched A Shares Sprint 2020 Is Expected To Debut In The First Quarter

Beijing-Shanghai high-speed railway IPO takes a key step.

In October 25th, the IPO draft prospectus issued by the Beijing Shanghai high speed railway Limited by Share Ltd (hereinafter referred to as Beijing-Shanghai high-speed railway) was officially disclosed on the official website of the SFC, revealing the mysterious veil of this "Big Mac" listing project.

Prospectus shows that the Beijing Shanghai high-speed rail IPO intends to raise 50 billion of the fund for the acquisition of 65.08% stake in Jingfu Anhui company. According to this fund-raising amount, this IPO will reach the fifth largest IPO level in the history of A shares and the largest IPO in 9 years.

The securitization of Beijing-Shanghai high-speed railway's high-quality assets has also been interpreted as an important step in speeding up the railway asset securitization. Up to now, China Railway Corporation has three A share listed companies, including Daqin Railway, Guangzhou Shenzhen railway and Tielong logistics company. Besides Beijing-Shanghai high-speed railway, IPO has also received the guidance of listing, which is expected to be listed on the SME Board of Shenzhen Stock Exchange.

According to the twenty-first Century economic report reporter statistics, from the point of view of issuance, the pace of IPO audit has accelerated significantly, and the postal savings bank has created a speed of only 4 months from the disclosure of prospectus to the issuance of approvals. According to this comparison, Beijing-Shanghai high-speed railway listing is just around the corner, and it is expected to get tickets for A shares in the first quarter of 2020.

Day earn 35 million

Compared with other railway sections, the earning power of Beijing-Shanghai high-speed railway has attracted the attention of the market.

Beijing-Shanghai high-speed railway was officially opened in April 18, 2008 and opened to traffic in June 30, 2011. The main line is 1318 kilometers long. It runs through three municipalities directly under the jurisdiction of Beijing, Tianjin and Shanghai, and the four provinces of Hebei, Shandong, Anhui and Jiangsu. It is the world's fastest high-speed railway with the longest mileage and the highest technical standard.

As of September 30, 2019, the Beijing Shanghai high speed railway has 991 thousand and 900 trains running on the whole line, and 1 billion 85 million passengers have been sent up. The passenger rate is basically maintained at the 73%~80% interval.

Strong passenger transport capacity brings bright profits. Prospectus shows that the company achieved revenues of 26 billion 300 million yuan, 29 billion 600 million yuan, and 31 billion 200 million yuan from 2016 to 2018 respectively, with net profit of 7 billion 900 million yuan, 9 billion 100 million yuan and 10 billion 200 million yuan. In the first 9 months of this year, a total revenue of 25 billion 2 million yuan and a net profit of 9 billion 520 million yuan were achieved. According to this calculation, the average daily net profit was nearly 35 million, and the profitability of A shares listed companies exceeded 90%.

This brilliant performance corresponds to just 67 employees, 25 of whom are seconded. According to this calculation, the average net profit per person per day is more than 500 thousand yuan.

This is also related to its entrusted transportation management business mode.

The prospectus shows that the company is the main body of investment, construction and operation of the Beijing Shanghai high speed railway and the stations along the line. By entrusting the transportation management mode, the Beijing bureau group, Ji'nan bureau group and Shanghai bureau group along the Beijing Shanghai high-speed railway will entrust the Beijing Shanghai high speed railway to carry out transportation management, and supervise the operation of the traction power supply and power facilities in the Railway Electrification Bureau Group.

This also means that compared with other A share listed companies, the operating costs involved in Beijing-Shanghai high-speed railway are mainly electricity and entrusted management fees, which rarely spend on marketing and R & D.

This mode is similar to its fundraising company, the Anhui company.

The listing of Beijing-Shanghai high-speed railway will not exceed 7 billion 556 million shares, accounting for no more than 15% of the total share capital issued after the issue, raising 50 billion yuan. After deducting the issue cost, it will be used to acquire 65.0759% stake in Beijing Fook Anhui company.

From the fund-raising of 50 billion yuan, Beijing-Shanghai high-speed railway will reach the fifth largest IPO level in the history of A shares, becoming the largest IPO of A shares in the past 9 years.

"I think the acquisition of Beijing Fuzhou Anhui company is mainly the transformation of asset structure, to make an asset replacement, to replace the trunk railway by the general iron holding company and the branch line to the local government. Most of the high-speed railways are working with local governments. Now there is a general policy for the railways to control the trunk railways by Tie Zong and non local governments. However, even if it is not controlled, it will be entrusted to operate. Beijing Jiaotong University professor Zhao Jian pointed out to the twenty-first Century economic news reporter.

"At present, I haven't seen how to use the disclosure after the local government receives the money. I think maybe it will buy some shares of the iron general line and make an asset replacement." Zhao Jian said.

Compared with the bright profits of Beijing-Shanghai high-speed railway, Beijing Fuzhou Anhui company is still in a state of deficit. Prospectus shows that Jing Fu Anhui company lost 1 billion 200 million yuan in 2018 and 8 billion 800 million yuan in the first three quarters of 2019. The reason is that the opening period of the Anhui section of the mussel and Hefei Fuzhou railway is still short. The Shang Hang Hang railway and the Zheng Fu railway are still under construction. At present, the company is still in the market incubation period.

How will the acquisition of this part of the assets affect the profitability of Beijing-Shanghai high-speed railway?

"I think the impact is not big. The scale of the two companies is quite different." Zhao Jian thinks.

Speed up railway Asset Securitization

Securitisation of high-speed rail is one of the priorities of the current railway reform. In November 2017, the railway development plan of 13th Five-Year issued by the four departments such as the national development and Reform Commission made it clear that it is necessary to study the related work of promoting the asset securitization of the high speed railway enterprises in the eastern region with stable cash flow and asset quality, and the listing and listing of high-quality assets.

As of October 28th, there were three A share listed companies of Daqin Railway, Guangzhou Shenzhen railway and Tielong logistics. In addition to Beijing-Shanghai high-speed railway's proposed IPO, the China Railway special cargo logistics Limited by Share Ltd also announced its listing guidance in September this year to be listed on the SME Board of Shenzhen Stock Exchange. Railway asset securitization is speeding up.

Haitong Securities analysis shows that Beijing-Shanghai high-speed railway has outstanding profitability and is one of the best assets of the iron general system. The listing of Beijing-Shanghai high-speed railway represents a trend of iron total quality asset securitization, which will further enhance the total hematopoietic capacity of iron and help to revitalize the quality assets of the general iron company. In the future, the listing of the total quality assets of iron will be a trend.

The listing window of Beijing-Shanghai high-speed railway may be coming soon.

Twenty-first Century economic report reporter statistics found that from the point of view of issuance, the pace of IPO audit has accelerated significantly in recent years. Wind data show that as of October 28th, the trial committee has audited 68 times since October, more than 59 in September, and 35 times higher than August, compared with 35 times in October last year.

"Recently, it is obvious that the IPO audit is speeding up, and sometimes there are several meetings a day." A large brokerage investment bank admitted to reporters.

Recently, the postal savings bank of China has set up a speed of only 4 months from issuing prospectus to getting approval issued. On the evening of June 28th, the postal savings bank disclosed the prospectus for the A share prospectus in the securities and Futures Commission in October 24th, and it was successful in October 24th.

Last year, industrial Fu Lian and Kang Ming Kang also created 36 days, 50 days of "lightning Association" record.

It is expected that nearly nine years of IPO fundraising records of Beijing-Shanghai high-speed railway IPO, is undoubtedly an important topic in this year's capital market. If we compare the 4 months' meeting time, Beijing-Shanghai high-speed railway is also expected to get tickets for A shares in the first quarter of 2020.