Galaxy Securities: Continuously Optimistic About the Sustained Prosperity of Railway Equipment

China Galaxy Securities research report states that in the first half of 2026, the national railway completed fixed asset investment of 363.2 billion yuan, a year-on-year increase of 2.1%, continuing growth from last year's high level; new lines put into operation reached 355.2 kilometers, a year-on-year increase of 16.5%. In the first half of the year, the national railway achieved a passenger volume of 2.348 billion people, a year-on-year increase of 5%, setting a new historical high for the same period; the freight volume reached 2.622 billion tons, a year-on-year increase of 2.5%. According to China Galaxy Securities' analysis of the lines, the average new operating mileage expected from 2026 to 2028 is likely to exceed 3,000 kilometers per year, with 2027 anticipated to be the peak year for line openings. In the next three years, the bidding for new train sets is expected to remain high; at the same time, the maintenance of train sets will progress according to the schedule and system, entering a release period starting in 2024. China Galaxy Securities estimates that the average annual market space for advanced repairs during the 14th Five-Year Plan period is expected to exceed 50 billion yuan. They maintain an optimistic outlook on the sustained high prosperity of railway equipment.