China Railway: Buying tyrannical rally expands

Hong Kong's Wen Wei Po Zhang Yi The mainland stock market to rebound after the first fall, and became a pretext for Hong Kong stocks to rise yesterday, while many Chinese stocks outperformed the big market.　　Seen in the city yesterday, internal housing stocks are still no lack of speculation on the object, just announced to the 0.94 yuan per share, 2 for 1 of the Minmetals Construction (0230), the stock price in the afternoon after the card to see a significant strength, once climbed to 1.26 yuan, the closing report 1.15 Yuan, still rose 10.58%. According to the latest figures released by the Railways Department, investment in fixed assets in the first 4 months increased by 127.9%, with capital investment increasing by 167% per cent a year. Stimulated by the relevant news, a number of infrastructure stocks have recorded varying degrees of increase, among them, the Chinese iron (0390) rally is more pleasing to the eye, its high level has seen 5.96 yuan, the closing price of 5.82 yuan, rose 0.29 yuan, an increase of 5.24%, the transaction increased to 7,096, 30,000 shares, compared to the Friday increase of twice times,　　Reflects the buying power has been significantly strengthened, so will undoubtedly be conducive to its share price in the afternoon to the good. In its earlier report, Nomura also looked at the momentum of the rebound in the mainland's railway infrastructure, and the 09 net profit forecast for the Chinese railways would be $4.27 billion (RMB, below),　　Up to 5.31 billion yuan, while the 2010 yuan net profit is expected to be raised from 5.88 billion to 7.03 billion yuan, while the target price is raised from 5.8 to 6.8 yuan, that is, there is about 17% increase in the current prices. With spin-off resources The potential of the real estate in addition to the core business of iron, the group intends to split its resources and property business is also the catalyst for the future. It is reported that the priority of the separation of resources business, involved in assets worth about 3 billion yuan, if the successful break-up, will help improve the performance of the group.　　In terms of stock price movements, the Chinese railway has made a high level in the past 8 months and, with a big deal, the next target price will move up to $7 on the basis of a stronger share price, but the $5.57 under the 10-day-long line should be taken first.　　China Railway: benefiting from the substantial increase in investment in the mainland's railways and the separation concept, the group has benefited from the subsequent market performance. Target price: 7 yuan Stop-loss: 5.57 RMB