[ET Net News Agency, 13 November 2017] Citi Research raised its target price for CRRC
Corp (01766) to HK$9 from HK$7.7, and upgraded its rating to "buy" from "neutral".
The research house said the EMU revenue should bottom out from 2H, supported by
accelerating HSR mileage completion and rising refurbishment contribution. CRRC has higher
GP exposure to HSR, and lower to Locomotive, compared with Zhuzhou CRRC Times Electric
(03898).
The SEMU procurement agreement between CRC and CRRC should alleviate the concern on SEMU
ASP cut in 2018-20, plus China HSR just ushered in L5 refurbishment, which could offset
any market share loss of CRRC on L3&L4 in the near term, Citi said.
Citi revised its FY2017-19 earnings forecasts by 2%/9%/8% respectively, mainly on faster
EMU delivery, but partly offset by more cautious GPM assumption. (KL)
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01766 CRRC
Nominal 
4.510 +0.010 (+0.222%) Others
13/11/2017 15:49
[I-bank focus]Citi upgrades CRRC (01766) to "buy" & HK$9
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