CIMC Group nine-month revenue up 8.3% on higher container sales volumes

Overview

• China logistics equipment maker's nine-month revenue rose 8.3% yr/yr

• Net profit attributable to shareholders fell 7.5% yr/yr for the first nine months

• Lower container prices and exchange rates weighed on profit despite higher sales volumes

Outlook

• Company expects rapid industry demand growth in fire safety and rescue equipment business

• Company reports order backlog in energy segment up 8.5% year-on-year as of September

• Company sees improving conditions and upward cycle in offshore engineering market

Result Drivers

• CONTAINER PRICES & FX - Higher container sales volumes drove revenue, but lower prices and exchange rates reduced profit

• ROAD VEHICLE SALES - Increased global sales of road transportation vehicles contributed to revenue growth

• CLEAN ENERGY SEGMENT - Higher demand for clean energy equipment and LNG projects boosted segment revenue and profit

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

• Wall Street's median 12-month price target for China International Marine Containers Group Co Ltd is CNY13.55, about 55.7% above its October 29 closing price of CNY8.70

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 27 - China's industrial profit growth picks up amid deepening economic divergence

• Oct 27 - Guangdong Investment 9M revenue rises on water resources strength

• Oct 28 - Logwin 9M revenue rises on higher volumes, freight rates; raises outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)