$CRRC (01766.HK)$ KGI has a technical target of HKD5.00. CRR...

KGI has a technical target of HKD5.00.

CRRC Corp Ltd is a China-based company principally engaged in the manufacture and sale of rail transit equipment. The Company's main businesses include railway equipment business, urban rail and urban infrastructure business, new industry business and modern service business. The railway equipment business mainly includes locomotive business, motor train unit and passenger car business, freight car business and rail construction machinery business. The urban rail and urban infrastructure business mainly includes urban rail vehicles, general contracting of urban rail projects and general contracting of other projects. The new industry business mainly includes electromechanical business and emerging industry business. The modern service business mainly includes financial business, logistics, trade business and other businesses.

It recently unveiled its latest hydrogen-powered city train at the exposition on China Brand amid the 2023 China Brand Day events. With a 600-km driving mileage, the train is equipped with automated start and stop technology and can reach zero emission while driving, of which CRRC Corp Ltd also holds full independent intellectual property rights for its latest hydrogen-powered city train.

China's pledge to reach carbon neutrality before 2060 and peaking CO2 emissions before 2030. By 2030, China aims to decrease its carbon intensity by over 65% from the 2005 level and to reach over 1200 GW of installed wind and solar power. CRRC Corp. latest hydrogen-powered city train supports China's pledge to reach carbon neutrality.

China recently worked with Central Asian countries to develop tourism based on intangible cultural resources along the ancient Silk Road in order to better reflect the region's rich history. Trial opening of Shanghai Disneyland has also attracted thousands of Chinese. These efforts to promote tourism should drive the demand for transport, and CRRC Corporation would stand to benefit from this rise in demand.

1Q23 revenue rose to RMB32.38b, a 5.65% increase YoY. Net Profit rose to RMB615.3m, up 180.01% YoY. Net profit margin rose to 1.9%, up 163.89% YoY and diluted EPS rose 100% to RMB0.02 YoY.

12 month consensus tp is HKD4.97 according to Bloomberg.