HK Stock Market Move | China Railway (00390) rose more than 5%. Institutions are optimistic about the resource sector driving valuation repair.

China Railway (00390) rose more than 5%, as of the time of publication, it increased by 5.17% to HK$4.27, with a trading volume of HK$175 million. Public information shows that China Railway currently operates five mines, with copper/cobalt/molybdenum reserves in a leading position in the industry. In 2024, the net profit attributable to the parent company of its subsidiary, China Railway Resources, was 3 billion yuan, accounting for 11% of the company's overall profit. Guosheng previously mentioned that if mineral resources are applied for as a potential core business, there is a possibility of acquiring new mines to accelerate development. It is expected that the net profit attributable to the resources sector will be 3.3 billion yuan in 2025. Shenwan Hongyuan Group believes that the resources sector will continue to exert strength, enhancing profitability elasticity and counter-cyclicality.