Shenwan Hongyuan: First give China Railway (00390.HK) a "buy" rating, optimize the report, and the resource sector's efforts will drive valuation repair.

According to the WiseFinance app, Shenwan Hongyuan released a research report stating that they are initiating coverage on China Railway Group Limited (00390.HK) with a "buy" rating. They believe that infrastructure investments in 2026 are expected to remain stable due to the promotion of local government debt and support from central government projects. The improvement in new signed orders, with a year-on-year growth of 3.7% in the first three quarters of 2025, and the continued strength in the resources sector, with a revenue of 6.223 billion yuan in the first half of 2025 (+8.04%), make the company's dividend yield of 5.1% attractive. The company is enhancing investor returns through its "Valuation Enhancement Plan."