HK Stock Market Move | China Railway Signal & Communication Corporation (03969) rose nearly 4% in early trading; the 15th Five-Year Plan for railway technological innovation has been released; the company is a leader in rail transit communication and signal systems.

China Railway Signal & Communication Corporation (03969) rose nearly 4% in early trading. As of press time, it was up 3.27% at HK$3.16, with a turnover of HK$24.69 million. On the news front, the National Railway Administration recently issued the "15th Five-Year Plan for Railway Technological Innovation," which sets out the guiding ideology, basic principles, development goals, key tasks, and safeguard measures for China's railway technological innovation during the 15th Five-Year Plan period. Meanwhile, the Plan will be submitted to the Central Science and Technology Commission for filing, marking the first time a railway technological innovation plan has been incorporated into the national science and technology management system. In a research report released at the end of August, Huatai stated that China Railway Signal & Communication Corporation is a global leader in rail transit communication and signal systems and is expected to benefit from the renewal and upgrading of high-speed rail communication and signal systems, while overseas markets are opening up new growth drivers. Its H-shares have traded at a valuation discount of about 42% to its A-shares over the past year, and the company's low-altitude economy business is progressing rapidly. We assign the company a 2026 A/H-share PE of 15x/8.7x, corresponding to target prices of RMB5.55/HK$3.74, and maintain a "Buy" rating.