HSBC Global Research raised its target price for Zhuzhou CRRC Times (03898) to HK$43 from HK$39 and upgraded its rating to "buy" from "hold" on improving prospects of IGBT (integrated gate bipolar transistor) business and a potential spin-off.
The research house said the share price has corrected by 27% in 2019 year-to-date and the market also has downgraded its earnings for FY2019 in recent weeks following a weaker than expected 2Q.
Market expectations on rail equipment new orders have also gone from optimistic to a more reasonable, low growth scenario, HSBC said. It believes the rail equipment procurement budget by China Railway should be maintained at RMB100bn per annum in 2019 and 2020.
etnet榮獲HKEX Awards 2023 「最佳表現證券數據供應商」大獎► 了解詳情
