China Rail Sector:Attention please,boarding now

Buy CRSC, HOLI, and Zhuzhou CRRC。

    We have marketed our rail FITT report "A change of track - switch fromconstructors to equipment suppliers" dated 31July in Singapore, Hong Kong,China, and Europe. We had the opportunity to talk to 100+ investors via meetingsor calls. While most investors agree with our thesis, there are some frequentlyasked questions from investors. In this note we summarize them, with ouranswers. Bottom line: we think the rail equipment sector has reached an inflectionpoint and is poised to rerate in the coming two to three years. Top picks: CRSC,Hollysys, and Zhuzhou CRRC.