[ET Net News Agency, 13 November 2018] Daiwa Research lowered its target price for
China Railway Signal & Communication (CRSC)(03969) to HK$6.2 from HK$7 and maintained its
"buy" rating.
The research house expects the weakness in the urban transit (URT) segment of CRSC in 1H
to reverse from 2H, driven by faster URT project implementation following the NDRC's
relaxation of URT project approvals in July 2018.
Daiwa expects new URT lines of more than 1,000km pa during 2018-20 versus 870km in 2017,
which should boost the demand for signal systems. It raised its 2018-19 EPS forecasts by
0-3% to reflect its new assumptions. (KL)