[ET Net News Agency, 6 May 2021] Jefferies Research initiated coverage on Guangshen
Railway (GSR) (00525) with a "buy" rating and target price of HK$1.8.
The research house said GSR is the only listed railway company engaged in passenger
transportation on the self-operation model and the loss of Rmb558mn in FY2020 was due to
pandemic impact which is a one-off.
While passenger traffic gradually recovery in the Greater Bay Area (GBA), the mid-term
overhang is the traffic diversion risk (from Guangshen High-speed Rail). Jefferies modeled
for earnings expansion of 67%/422% in FY2021/22. (KL)