[ET Net News Agency, 13 November 2017] Citi Research raised its target price for
Zhuzhou CRRC Times Electric (ZZCTE)(03898) to HK$52.3 from HK$40.9, and upgraded its
rating to "buy" from "neutral".
The research house said ZZCTE would benefit from EMU recovery and robust URT expansion,
while the downside risk to slowing Locomotive and CRC cost cut is limited. Further, Citi
expects IGBT to bear fruit and support overall GPM improvement, given the internal
application on URT and HSR, plus the exploitation of external customers.
The potential new driver is the E-PV controller, which ZZCTE has obtained 500k units
intention order, it noted. Citi expects EMU delivery to speed up along with HSR mileage
completion is about to double in 2018 and maintain healthy thru 2020. (KL)