00390 Should I Buy

The analyst rating from UBS is based on the belief that infrastructure will continue to be a key stabilizer for China's economy amid external uncertainties and weak domestic demand. UBS anticipates that infrastructure growth will be more structural than broad-based due to a substantial base. They expect growth pressures to ease as property conditions stabilize and fiscal support becomes more effective. Consequently, they have maintained a "Buy" rating for CHINA RAILWAY due to its exposure to the mining business, which offers more earnings and valuation leverage, while assigning a "Neutral" rating to CHINA RAIL CONS based on a high dividend theme.