CRRC Corp. Ltd.

In the news

China looks to build new maglev rail line to boost economy Apr 17, 2020
Alstom strikes at China rail dominance with Bombardier buy Feb 19, 2020
China rail giant's 'American factory' braces for political storm Nov 1, 2019
Myanmar rushes power plant projects to avoid more blackouts Oct 28, 2019
Hitachi targets high-speed rail projects from Texas to Thailand Oct 24, 2019

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.

Business Summary

CRRC Corp. Ltd. engages in the manufacture, trade, and lease of transportation vehicles. Its main business is R & D, design, manufacturing, repair, sales, leasing and technical services of railway locomotives, EMUs, urban rail transit vehicles, engineering machinery, various mechanical and electrical equipment, electronic equipment and parts, electronic appliances and environmental protection equipment products, industrial investment and management and asset management. The company was founded on December 28, 2007 and is headquartered in Beijing, China.

Financial Highlights

Dec 2019	HKD	USD
Revenue	257,481.43M	32,862.14M
Gross Profit	55,248.33M	7,051.30M
Operating income	15,049.03M	1,920.69M
Income before tax	18,438.28M	2,353.26M
Net income	13,374.46M	1,706.97M
EBITDA	23,279.91M	2,971.19M
Diluted EPS	0.45	0.05
Dividends Per Share	0.16	0.02
Total Assets	429,254.80M	55,090.58M
Total liabilities	244,250.64M	31,347.14M
Total equity	152,009.99M	19,508.96M
Operating cash flow	27,090.10M	3,457.48M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	296,778.84M	261,886.94M	238,740.01M	254,090.99M	257,481.43M
Gross Profit	56,521.63M	52,611.73M	52,654.56M	54,558.74M	55,248.33M
Operating income	19,701.10M	17,344.42M	14,703.25M	14,841.22M	15,049.03M
Income before tax	20,512.13M	19,238.86M	17,133.65M	17,511.03M	18,438.28M
Net income	14,577.76M	13,191.60M	12,443.36M	13,390.30M	13,374.46M
EBITDA	27,369.05M	24,452.84M	21,699.23M	22,142.58M	23,279.91M
Diluted EPS	0.53	0.48	0.42	0.46	0.45
Dividends Per Share	0.17	0.23	0.18	0.17	0.16
Total Assets	372,037.61M	377,446.27M	450,414.85M	407,703.96M	429,254.80M
Total liabilities	229,848.37M	232,680.27M	273,137.61M	230,734.31M	244,250.64M
Total equity	115,651.10M	116,986.68M	145,954.86M	146,487.64M	152,009.99M
Operating cash flow	18,750.63M	22,186.31M	17,698.61M	21,610.81M	27,090.10M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	38,281.33M	33,737.63M	30,635.90M	32,419.71M	32,862.14M
Gross Profit	7,290.69M	6,777.71M	6,756.80M	6,961.20M	7,051.30M
Operating income	2,541.23M	2,234.39M	1,886.76M	1,893.60M	1,920.69M
Income before tax	2,645.84M	2,478.45M	2,198.64M	2,234.24M	2,353.26M
Net income	1,880.37M	1,699.41M	1,596.77M	1,708.48M	1,706.97M
EBITDA	3,530.31M	3,150.14M	2,784.51M	2,825.19M	2,971.19M
Diluted EPS	0.06	0.06	0.05	0.05	0.05
Dividends Per Share	0.02	0.03	0.02	0.02	0.02
Total Assets	48,003.92M	48,682.95M	57,617.69M	52,073.79M	55,090.58M
Total liabilities	29,657.27M	30,011.06M	34,940.14M	29,470.43M	31,347.14M
Total equity	14,922.43M	15,088.92M	18,670.75M	18,710.06M	19,508.96M
Operating cash flow	2,418.63M	2,858.15M	2,271.14M	2,757.34M	3,457.48M

Valuation Measures

Dec 2019
PER	12.18
ROA	3.19%
ROE	8.96%
Operating margin	5.84%
Profit margin	5.19%

Key executives

President, General Manager & Executive Director: Yong Cai Sun
Chief Financial Officer & Chief Accountant: Zheng Li
Vice President: Jun Zhang
Vice President: Gong Cheng Wang
Executive Director: Qi Liang Lou

Shareholders

National Council for Social Security Fund (4.9%)
Baring Asset Management Ltd. (4.9%)
The Vanguard Group, Inc. (3.6%)
Norges Bank Investment Management (2.6%)
BlackRock Fund Advisors (2.5%)
Fidelity Management & Research Co. LLC (2.3%)
Robeco Institutional Asset Management BV (1.5%)
APG Asset Management NV (1.2%)
JPMorgan Asset Management (UK) Ltd. (1.1%)
Lazard Asset Management LLC (0.9%)

Contact Details

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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Jiangsu CSR Electric Co., Ltd.
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Zhongche Dalian Locomotive Vehicle Co. Ltd.
CRRC Sifang Co. Ltd.
CRRC Yangtze Co. Ltd.
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Shanghai Xinghan Asset Management Co. Ltd.
CSR Yangtze Rolling Stock Co. Ltd.
CSR Qishuyan Locomotive & Rolling Stock Works
CSR Guiyang Vehicle Co. Ltd.
Ningbo Yincheng Group Co., Ltd.
CRRC Investment & Leasing Co., Ltd.
Changchun Railway Vehicles Co., Ltd.
CRRC (Hong Kong) Co. Ltd.

Competitors

Caterpillar Inc.
Alstom SA
Inner Mongolia North Hauler Joint Stock Co., Ltd Class A
Schaltbau Holding AG
Westinghouse Air Brake Technologies Corporation
Bombardier Inc. Class B
Hyundai Rotem Co.

Last Updated on 27 May, 2020