[ET Net News Agency, 13 November 2018] Daiwa Research lifted its target price for
Zhuzhou CRRC Times Electric (03898) to HK$41.3 from HK$40 and upgraded its rating to
"hold" from "underperform".
The research house expects CRRC to benefit from rising demand for locomotives over
2019-20, but it also sees a gloomy outlook for its non-railway segments, including IGBT,
new energy vehicles, and railway maintenance products.
Operating expenses look likely to rise faster than the top line given its continual
efforts to foster new businesses, Daiwa added. It cut its 2018-19 EPS forecasts by 3-6% to
reflect the weak 3Q results and its lower growth assumptions for locomotives and MU volume
on less exciting company guidance. (KL)