Daily Investment Strategy
Daily focus：Times Electric（3898）
The company benefited from the continued ramp-up of China's high-speed rail tenders. This year, China National Railway has completed tenders for 278 350 km/h EMU trainsets, surpassing the 247 sets awarded for the entire year last year, demonstrating strong passenger volume and demand for train replacements. CRRC received RMB 54bn in new orders in the third quarter, of which RMB 37.8bn was for EMU trains, reflecting a strong market. As a key component supplier, Times Electric is expected to secure stable orders and maintain its growth momentum over the next three years. This year, railway passenger volume totaled 3.2bn, a year-on-year increase of 6.7%. Fixed asset investment from January to August reached RMB504.1bn, a 5.6% increase. The full year is expected to exceed RMB 800bn to support the plan to add 2,600 kilometers of mileage. Both policy and demand will drive its continued market share expansion and consolidate its leading position.
Transformation of the Super Golden Week Tourism Market
In 2025, China's "Super Golden Week" tourism and consumption performance reached record highs, with record-breaking passenger traffic and scenic spot bookings, fully demonstrating the resilience of domestic demand. New trends worth noting include Generation Z consumers' enthusiasm for cultural tourism, museums, outdoor camping, hot spring experiences, and other experiences. Strong momentum in travel and group buying in lower-tier cities is driving demand for unique hotels and high-end experiences. Furthermore, online booking and digital payment are further enhancing convenience, and outbound tourism has also seen a significant recovery, reflected the diversification and upgraded of consumption patterns. From an investment perspective, the booming travel and consumption upgrade trends are clearly beneficial to sectors such as cultural tourism, lifestyle services, high-end hotels, and new retail platforms, which are expected to become the driving forces of domestic consumption growth in the next phase.
Hong Kong Stock Connect was suspended due to a public holiday in China.
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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