Although the demand for most locomotives has fallen at present, locomotive manufacturers are still optimistic about the medium and long-term demand growth, so the purchase of rail fasteners still maintains a large growth. The maintenance demand of rail fasteners is relatively rigid, and the competitiveness of rail fasteners is relatively large, and the impact of the decline in overseas market demand is relatively small. We expect that the output of trains and passenger cars will increase by more than 50% in the whole year, the decrease of trains and freight cars will be about 20%, and the locomotives will be basically the same. The income of rail fasteners will still grow faster than that of locomotives, but the gap will narrow.
From the perspective of sub-industries, the gross profit margin of rail fasteners industry has risen faster than that of locomotives. This is because the capacity utilization rate of rail fasteners has decreased significantly less than that of locomotives. The rail fasteners industry is more demanded to steel. The production cycle of rail fasteners is relatively short, and the cost of rail fasteners is falling relatively quickly.