Zhuzhou CRRC Times Electric 9M revenue rises on rail, emerging equipment growth

Zhuzhou CRRC Times Electric

Today 09:23

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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Oct 29 - Sany Heavy Equipment 9M profit falls on lower government grants

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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.)