CRRC ( merger of CSR and CNR ) 1766

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not vested

China rail giant makes debut on Hong Kong, Shanghai exchanges

CRRC, the world's second largest industrial company after the United States' General Electric, is worth US$130 billion.

By Roland Lim

HONG KONG: Railway giant CRRC, borne out of the merger of Chinese rail companies CSR and CNR, on Monday (Jun 8) made its debut on the Shanghai and Hong Kong exchanges.

CRRC, the world's second largest industrial company after the United States' General Electric, is worth US$130 billion, with economies of scale that will allow China to compete even more aggressively for overseas rail deals.

"The merger aims to build a new transnational and global leading solution provider of high-end railway transport equipment," said CRRC Corporation President Cui Dianguo.

Its previous entities CSR and CNR controlled China's entire high-speed rail market, with a market share of 80 per cent for cargo trains and most of the country's subways. The move to consolidate was to avoid "in-fighting" when bidding for overseas projects.

Germany’s Siemens AG and France’s Alstom may be technologically ahead with high-tech specs, but CRRC will be competing on value for money.

Chinese Premier Li Keqiang was the face of high-profile contracts signed in emerging markets in Africa, Latin America and Southeast Asia, giving CRRC muscle to bid for projects in the US and Europe.

In 2014, CNR won China’s first major rail contract in North America - a US$567 million deal for Boston subway trains - with a proposal nearly 50 per cent cheaper than Canada's Bombardier bid.

According to China's Commerce Ministry, the mainland already has the world’s largest high-speed rail network.

Official data shows that in 2014, China participated in 348 overseas rail projects and exported US$3.7 billion worth of locomotive equipment.

Source: CNA

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vested

<Research Report>M Stanley Downgrades CRRC to Underweight; Overseas Orders Growth Expected to Slow

Morgan Stanley, in its research report, downgraded CRRC (01766.HK) H-share investment rating from the previous Equalweight to Underweight, saying that the merger of CSR and CNR came earlier than its expectation, but the new orders year to date were worse than expected (especially for overseas orders).

The broker predicted that the locomotive demand in Mainland China will be weaker than previously expected this year.

Target price was kept at $9.8, indicating 2015E P/E of 17.6x.

Source: AAStocks Financial News

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vested

Trainmaker CRRC share slide continues

CRRC Corporation (1766) slumped another 10 percent in both Hong Kong and Shanghai yesterday after Morgan Stanley reported its new orders for this year failed to meet expectations.

The giant forged from the merger of CNR and CSR, China's two largest trainmakers, has seen shares slump for six consecutive days in Shanghai after a 10 percent jump on its trading debut.

They closed at 21.58 yuan (HK$26.95) yesterday, down 33.4 percent from June 8, thus wiping out 300 billion yuan in market capitalization.

In Hong Kong, the stock ended at HK$11.04, down 29.59 percent from June 8.

Morgan Stanley gave a target price of HK$9.80, representing a 17.6 times price-to-earnings ratio.

Ben Kwong Man-bun, KGI Asia chief operating officer, is still positive about the company's prospects and blames the share slump on profit taking.


Source: The Standard HK

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Interim Results

Revenue: +6%
Profit After Tax: 13%

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CRRC Corp (1766 HK)

1H15: Slowdown Of Domestic New Orders But Overseas Markets A Growth Driver

CRRC’s single-digit earnings growth in 1H15 is moderately below market expectation.

We expect China’s railway investment growth to decelerate in the coming years, which should curb the growth momentum of new contracts for rolling stock makers while the decent growth of overseas markets and the urban transit segment will support steady
growth for CRRC.

Maintain HOLD. Target price: HK$10.10. Entry price: HK$8.60.

Source: UOBKH

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vested

<Post-Result>Brokers Latest Ratings & TPs for CRRC (01766.HK)

CRRC (01766.HK) recently announced that the net profit for the first half of the year gained 6.85% year-on-year to RMB4,699 million.

EPS was RMB0.17.

No interim dividend was declared.

Turnover rose 6.26% from a year earlier.

The investment ratings and target prices for the company given by nine securities brokers were shown as follows:

Broker / Investment Rating / Target Price (HK$)
Macquarie / Outperform / 15.3
BofA Merrill Lynch / Buy / 13.7
Barclays / Overweight / 17->12.5
Nomura / Buy / 12.77->12.31
Deutsche Bank / Hold / 12.25
UBS / Neutral / 11.6
HSBC / Hold / 15->11.3
UOB Kay Hian / Hold / 16.5->10.1
Jefferies / Hold / 9.3

Source: AAStocks Financial News

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vested

<Research Report>Barclays Maintains CRRC (01766.HK) at Overweight; Target Cut to $12.5

Barclays is disappointed about CRRC (01766.HK)'s interim results, mainly due to higher SG&A expenses.

The research house is still bullish on the company's overseas market development and maintained the rating at Overweight.

However, the 2015-2017E earnings was trimmed by 68%/76%/81% in order to factor in relatively high costs.

Correspondingly, the target price was cut to $12.5 from $17.

Source: AAStocks Financial News

[winston]

vested

CRRC Corp (1766 HK)

Strong Pick-up In New Orders In 3Q15 And Resilient New Orders In Full Year

CRRC’s recent share price weakness has largely priced in the disappointing growth in new orders in 1H15.

Meanwhile, we expect CRC to report a strong pick-up in new orders in 3Q15 on the back of CRRC’s efforts to ramp up railway procurement.

We project CRRC’s full-year new orders to edge up moderately in 2015.

Maintain HOLD due to fair valuation.

Target price: HK$10.10. Entry price: HK$8.50.

Source: UOBKH

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China firms sign deal for high-speed Las Vegas-Los Angeles rail link ahead of Xi's U.S. visit

BY BRENDA GOH

Source: Reuters

http://www.reuters.com/article/2015/09/ ... orethebell

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Sino-Thai Railway Project Likely to Begin Construction Within 2015

Tanasak Patimapragorn, Deputy Prime Minister, gave a positive response in an written interview that Sino-Thai railway project may commence construction within this year, and total length of the railway project is 840 km, Xinhua News Agency reported.

Thailand and China will hold an important talk on the railway cooperation in Bangkok in October, aiming to set down the details of the cooperation, according to the people from Thailand's Ministry of Foreign Affairs who are familiar with the matter.

Source: AAStocks Financial News