High-speed rail equipment industry may usher in new opportunities

Summary â– Event: China Railway's total repurchase of the 100-year-old "Revival": Recently, Caixin.com issued a document saying that China Railway Corporation purchased 104 China Volunteer EMUs, with a total purchase price of about 17.8 billion yuan. Since...
■ Event: China Railways repurchased Bailian “Revival”: Recently, Caixin.com issued a statement saying that China Railway Corporation purchased 104 Chinese “Established” EMUs, with a total purchase price of about 17.8 billion yuan.
Since the China Standard EMU obtained the type certificate, the total purchase volume has reached 154.
■ China's singapore received large orders, and the investment in railway locomotives and vehicles dropped to rise: the purchase price of this “Revival” was in the range of 170 million to 172 million yuan/column, compared with the base price of 180 million yuan/column price reduction of 5%. The total price is about 17.8 billion yuan. According to Caixin.com, the investment in railway locomotives in 2015 was nearly 140 billion yuan. In 2016, it was reduced to 92 billion yuan, becoming the lowest investment year for motorcycles in recent years. Including the bidding for this EMU, China Railway has launched several tenders in 2017. At present, China Railway has invested about 70 billion yuan in locomotives in 2017. It is expected to invest 30-40 billion yuan in vehicles before the end of the year. Overall, investment in railway rolling stock will drop to rise this year.
■ The EMU market rebounded sharply, and the high-speed rail network drove the development of enterprises: According to the “Medium and Long-term Railway Network Plan”, China will continue to build high-speed railways for 11,000 kilometers during the 13th Five-Year Plan period. According to the density of 0.15 columns/km, 2016- In 2020, a total of 1,650 columns will be required, with an average annual demand of 330 columns. In 2016, only 110 bids were tendered, so it is foreseeable that the number of EMU tenders in 2017 will rebound sharply and is expected to exceed 400. According to the plan, during the "13th Five-Year Plan" period, the national new railway will not be less than 23,000 kilometers, and the total investment will be no less than 2.8 trillion yuan. The market initially predicted that during the “13th Five-Year Plan” period, China is expected to build 30,000 kilometers of new railways and 11,000 kilometers of high-speed railways. 2017 is still the peak period for the construction of China's high-speed railway. When the railway construction is hot, it will definitely drive the performance of railway construction related enterprises.
â–  Advanced training to meet the rapid growth period, the market potential of the EMU is huge: According to the maintenance standards of the EMU, it can be speculated that China's EMU will enter the fourth-grade repair after 3-5 years of operation. In 2011, the EMU experienced a peak in procurement, and it can be inferred that after 2017, advanced repairs will enter a period of rapid growth in demand. After nearly 10 years of rapid development, China's current motor vehicle ownership has reached the 2586 standard group, and the high-speed railway construction mileage exceeds 19,000 kilometers, ranking first in the world. At the same time, the EMU gradually turned from the front end to the back end year by year, and the market after the EMU was gradually opened. The total investment share of the EMU market will increase rapidly.

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