7.23 Accidents Affect The Ministry Of Railways Financing &Nbsp; More Reliance On Market Financing In The Future.

Occurring in the late July 23rd Yongwen The rear end collision caused many deaths, which caused people to question the safety of the high-speed railway. At the same time, the capital market also paid extensive attention to the financial problems of the Ministry of railways.

After the accident, a number of securities issued an analysis report on the financial situation of the Ministry of railways. "At the end of the first quarter of 2011, the Ministry of railways had a debt assets ratio of 58% and a total debt of 1 trillion and 980 billion yuan. In 2010, the Ministry of Railways earned a total income of 686 billion yuan, but its net profit was only 15 million yuan. In the first quarter of 2011, the loss amounted to 3 billion 800 million yuan, "Gao Hua Securities Research Report analyzed.

Jiang Langting, an analyst with Gao Hua, said that the major accident of motor vehicle rear end collision in July 23rd may accelerate the reform of the Ministry of railways, that is, to solve the current system of the unity of the Ministry of Railways and the government and enterprises, so as to enhance the Ministry of Railways's supervision over China's railway network.

According to Gao Hua Securities Research Report, from the beginning of the year to date Ministry of Railways The total issue of bonds was RMB 104 billion yuan. In the latest issuance, the Ministry of Railways originally planned to raise 20 billion yuan, but finally raised only 18 billion 700 million yuan, and the interest rate rose sharply. In addition, the "7.23" railway accident caused the Ministry of Railways to issue bonds, and debt financing became more difficult.

Analysts at CICC said that debt financing was more difficult and cost increased, which was related to the rise of the asset liability ratio and profitability of the railway itself. It also showed that the liquidity of the credit market was not sufficient, which would cause hidden troubles in the Ministry of Railways in the future. We believe that under such circumstances, the Ministry of Railways will be forced to reduce investment scale, speed up the transformation of operation to market transformation, increase revenue and increase efficiency, improve operating cash flow, raise the proportion of direct financing, use platform refinancing of railway listed companies, continue to choose high-quality assets restructuring and listing, expand market financing channels (such as selecting eligible joint venture railway companies, and transferring part of the stake in National Railways).

Guang Fa securities analyst said, "in view of the seriousness of the accident and the high social attention, we believe that the market sentiment and investment confidence of the high-speed rail sector will be hit in a short time, and the plate will face higher valuation pressure in the short term. In addition, the transfer of the work center of the Ministry of Railways and our progress in the medium and short term high-speed rail construction slow down We expect that the growth of the performance of high-speed rail related listed companies will also be suppressed.