CICC raised CRRC's 2024 earnings estimate per share by 15% to 44 cents.
The Zhitong Finance App learned that CICC released a research report stating that it maintains CRRC (01766)'s “outperforming industry” rating, increases the 2024 earnings per share by 15% to 44 points, and introduces a 2025 earnings estimate of 47 cents per share. Considering the increase in profit, the target price was raised 15% to HK$5.11.
According to the report, CRRC's net profit for the first quarter was RMB 1,008 billion, up 63.9% year on year, and exceeded the forecast, mainly due to the increase in EMU deliveries and the high level of business profit. Railway equipment revenue increased dramatically during the period. Significant increase in gross margin and optimization of cash payments. The EMU business is expected to continue to rise.