Zhuzhou CRRC Times Electric 9M revenue rises on rail, emerging equipment growth
Overview
China rail equipment maker's unaudited nine-month operating revenue rose 10.6% yr/yr
Net income attributable to shareholders up 3.1% yr/yr for nine months
Company invested RMB 2.17 bln in R&D, 10.1% of revenue
Outlook
Company did not provide specific financial guidance or outlook for the current or future periods
Result Drivers
RAIL AND EMERGING EQUIPMENT – Nine-month revenue growth was led by rail transit electric equipment, automotive and semiconductor segment sales
HIGHER OPERATING COSTS – Cost of sales rose RMB1.37 bln and R&D expense increased RMB243 mln, outpacing revenue growth and limiting profit expansion
R&D INVESTMENT - Co invested RMB 2.17 bln in R&D, representing 10.1% of revenue
PROCUREMENT CASH OUTFLOWS – Operating cash flow swung to an RMB210 mln outflow as cash paid for goods and services rose to RMB17.87 bln from RMB11.75 bln
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Operating Revenue | RMB 20.82 bln | ||
9M Net Income Attributable | RMB 2.81 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy electrical equipment peer group is "buy"
Wall Street's median 12-month price target for Zhuzhou CRRC Times Electric Co Ltd is CNY56.00, about 27.1% above its October 30 closing price of CNY44.05
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 20 three months ago
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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.)