Asia300

CRRC Corp. Ltd.

China

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May 29, 2017
Prev close: 7.32
May 29, 2017
Market cap:
Market cap(USD):
308,642.26M
39,598.70M
Shares: 28,698.86M

Currency in HKD

Company profile

Market(Ticker): HKG(1766)
Sector:
Industry:
Producer Manufacturing
Trucks/Construction/Farm Machinery
Full time employees: 183,061

Business summary

CRRC Corp. Ltd. engages in the manufacture, trade, and lease of transportation vehicles. It operates through the following segments: Railway Equipment; Rapid Transit Vehicles and Urban Infrastructure; New Businesses; and Modern Service. The Railway Equipment segment offers parts and components for passenger carriage, freight wagon, and track engineering machinery businesses. The Rapid Transit Vehicles and Urban Infrastructure segment develops and manages intercity electrical multiple unit trains and rapid transit vehicles. The New Businesses segment consists of water treatment machines, new energy vehicles, and wind power equipment. The Modern Service segment deals with logistics, trading, and financial services. The company was founded on December 28, 2007 and is headquartered in Beijing, China.

Company background

CRRC is China's state-owned train manufacturer formed through a recent megamerger of CSR and China CNR. It virtually monopolizes China's rail car market and is the world's largest train manufacturer, with a 50% share of subway cars around the globe.

Its origins can be traced back to the Qing dynasty in the late 1800s. After the establishment of the People's Republic of China in 1949, CRRC made rail cars as a state-owned train maker under the former Ministry of Railways. CRRC was split into CSR and CNR in 2000 following state-owned company reforms. However, it merged again as a gigantic train maker at the request of President Xi Jinping's administration, a proponent for Chinese companies expanding overseas.

CRRC is focused on exporting high-speed railways. In an effort to adopt train manufacturing technology, CSR has so far teamed up with Japan's Kawasaki Heavy Industries and Canada's Bombardier, while CNR has partnered with Germany's Siemens and France's Alstom. The consolidation will enable CRRC to merge advanced technology. It also manufactures train driving and control components, which have had to be imported in the past.

As the government has 60% of outstanding shares, CRRC's business is inseparably linked to China's national policy. CRRC is eager to take advantage of economies of scale to increase orders from Southeast Asia, Africa and South America.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 266,231.38M
Gross profit 51,464.22M
Operating income 18,192.69M
Income before tax 19,256.96M
Net income 13,197.98M
EBITDA 25,757.60M
Diluted EPS 0.47
Dividends per share 0.23
Total assets 377,433.32M
Total liabilities 232,662.00M
Total equity 116,982.37M
Operating cash flow 25,205.20M

Currency in HKD

Revenue 34,297.30M
Gross profit 6,629.88M
Operating income 2,343.67M
Income before tax 2,480.78M
Net income 1,700.23M
EBITDA 3,318.22M
Diluted EPS 0.06
Dividends per share 0.03
Total assets 48,681.28M
Total liabilities 30,008.70M
Total equity 15,088.36M
Operating cash flow 3,247.06M

Currency in USD

Valuation measures

Dec 2016

PER 14.52
ROA 3.52%
ROE 11.34%
Operating margin 6.83%
Profit margin 4.95%

Key executive

  • Chairman & General Manager: Hua Long Liu
  • Vice Chairman & President: Guo Hua Xi
  • Chief Financial Officer & Vice President: Yan Jing Zhan
  • Vice President: Jun Zhang
  • Vice President: Qi Liang Lou

Share holders

  • Himalaya Capital Management LLC(6.1%)
  • The Vanguard Group, Inc.(3.2%)
  • BlackRock Fund Advisors(2.0%)
  • Hang Seng Investment Management Ltd.(1.5%)
  • Norges Bank Investment Management(1.0%)
  • FIL Investment Management (Hong Kong) Ltd.(0.9%)
  • Templeton Investment Counsel LLC(0.8%)
  • BlackRock Investment Management (UK) Ltd.(0.7%)
  • APG Asset Management NV(0.6%)
  • BlackRock Japan Co., Ltd.(0.4%)

Address

  • Website: http://www.crrcgc.cc
  • Address: 16 Central West Fourth Ring Road, Haidian District, Beijing, 100036, China
  • Phone: +86.10.5186.2188

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