CRRC (01766) is pleased. Net profit for the first quarter is expected to increase 50% to 70% year over year, reaching 923 million to 1.05 billion yuan.
The Zhitong Finance App learned that Morgan Stanley released a research report stating that it gave CRRC (01766) an “increase in holdings” rating, believing that it would also help maintain revenue growth and operating leverage. The target price was HK$4.5. The company's initial results slightly beat expectations.
According to the report, CRRC's net profit for the first quarter is expected to increase 50% to 70% year-on-year, reaching 923 million to 1.05 billion yuan. Although the base is low, the median net profit of 985 million yuan is higher than the bank's and market expectations. In addition, recurring net profit increased 186% to 246% year over year, reaching 583 million to 706 million yuan. Management attributed steady profit growth to changes in revenue structure and low base.