[ET Net News Agency, 26 August 2019] Citi Research lowered its target price for Zhuzhou
CRRC Times Electric (03898) to HK$48 from HK$53.1 and maintained its "buy" rating.
The research house said 1H locomotive bidding of 419 units is behind expectation. Citi
expects bidding to improve in 2H and meet 2019 delivery guidance of 800 units.
The rail freight traffic growth accelerated to 8% in 2Q, versus 3% in 1Q, helped by
central government's promotion on "road to rail". In case of further accelerating rail
freight traffic growth ahead, there should be upside risk to the 2H biddings.
Citi cut its FY2019-21 EPS forecasts by 5%/6%/8%, on lower revenue growth across all
products. (KL)