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Producer Manufacturing

CRRC Corp. Ltd.

  • 6.88 HKD
  • -0.24
  • -3.37%
  • China
    Sep 21, 2018
  • Ticker
    HKG(1766)
  • Prev. close
    7.12
  • Market cap (HKD)
    271,307M
  • Market cap (USD)
    34,716.90M
  • Shares
    28,698.90M

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. 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.

Financial Highlights

Dec 2017 HKDUSD
Revenue240,878.31M30,910.30M
Gross Profit51,209.58M6,571.38M
Operating income14,126.76M1,812.79M
Income before tax17,149.94M2,200.73M
Net income12,451.67M1,597.83M
EBITDA21,355.74M2,740.44M
Diluted EPS0.420.05
Dividends Per Share0.180.02
Total Assets450,520.14M57,631.16M
Total liabilities273,289.75M34,959.60M
Total equity145,924.44M18,666.85M
Operating cash flow19,505.46M2,503.00M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 123,462.40M 277,854.83M 296,778.84M 266,230.73M 240,878.31M
Gross Profit 21,569.10M 53,587.69M 56,521.63M 51,463.48M 51,209.58M
Operating income 6,392.83M 18,249.68M 19,559.16M 17,800.54M 14,126.76M
Income before tax 7,027.36M 17,304.64M 20,512.13M 19,238.86M 17,149.94M
Net income 5,223.47M 13,611.58M 14,577.76M 13,191.60M 12,451.67M
EBITDA 8,853.31M 24,869.92M 27,227.11M 25,404.64M 21,355.74M
Diluted EPS 0.37 0.98 0.53 0.47 0.42
Dividends Per Share 0.11 0.14 0.17 0.23 0.18
Total Assets 155,140.84M 373,509.87M 372,008.30M 377,473.68M 450,520.14M
Total liabilities 93,701.97M 239,963.53M 229,819.06M 232,690.13M 273,289.75M
Total equity 46,825.40M 111,616.53M 115,651.10M 116,986.68M 145,924.44M
Operating cash flow 6,935.46M 38,101.44M 18,750.63M 25,196.51M 19,505.46M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 15,916.99M 35,830.58M 38,281.33M 34,297.22M 30,910.30M
Gross Profit 2,780.72M 6,910.36M 7,290.69M 6,629.79M 6,571.38M
Operating income 824.17M 2,353.37M 2,522.92M 2,293.15M 1,812.79M
Income before tax 905.98M 2,231.50M 2,645.84M 2,478.45M 2,200.73M
Net income 673.41M 1,755.27M 1,880.37M 1,699.41M 1,597.83M
EBITDA 1,141.38M 3,207.08M 3,512.01M 3,272.75M 2,740.44M
Diluted EPS 0.04 0.12 0.06 0.06 0.05
Dividends Per Share 0.01 0.01 0.02 0.03 0.02
Total Assets 20,008.49M 48,164.68M 48,000.13M 48,686.49M 57,631.16M
Total liabilities 12,084.73M 30,943.67M 29,653.49M 30,012.33M 34,959.60M
Total equity 6,039.06M 14,393.12M 14,922.43M 15,088.92M 18,666.85M
Operating cash flow 894.13M 4,913.34M 2,418.63M 3,245.94M 2,503.00M

Valuation Measures

Dec 2017
PER19.07
ROA3.00%
ROE9.47%
Operating margin5.86%
Profit margin5.16%

Key executives

  • President & Executive Director: Yong Cai Sun
  • Chief Financial Officer & Vice President: Yan Jing Zhan
  • Vice President: Jun Zhang
  • Vice President: Qi Liang Lou
  • Chief Engineer: Xin Ning Zhang

Shareholders

  • Himalaya Capital Management LLC (4.9%)
  • The Vanguard Group, Inc. (3.3%)
  • BlackRock Fund Advisors (2.4%)
  • BlackRock Investment Management (UK) Ltd. (1.4%)
  • Norges Bank Investment Management (1.2%)
  • Hang Seng Investment Management Ltd. (1.0%)
  • FIL Investment Management (Hong Kong) Ltd. (0.8%)
  • Morgan Stanley Investment Management Co. (0.7%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • JPMorgan Asset Management (UK) Ltd. (0.6%)

Contact Details

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

Related Companies

  • CRRC Beijing Locomotive Co., Ltd.
  • CRRC Qingdao Sifang Rolling Stock Research Institute Co., Ltd.
  • CRRC Trading Ltd.
  • CRRC Beijing Erqi Vehicle Co., Ltd.
  • CRRC Hong Kong Capital Management Co. Ltd.
  • CRRC Wind Power (Shandong) Co., Ltd.
  • Nanjing Puzhen Haitai Brake Equipment Co., Ltd.
  • Jiangsu CSR Electric Co., Ltd.
  • CRRC Ziyang Co. Ltd.
  • CRRC Industrial Investment Co., Ltd.
  • Zhongche Dalian Locomotive Vehicle Co. Ltd.
  • Zhongche Ziyang Locomotive Co. Ltd.
  • CRRC Sifang Co. Ltd.
  • CRRC Yangtze Co. Ltd.
  • CSR Shijiazhuang Co. Ltd.
  • Shanghai Xinghan Asset Management Co. Ltd.
  • CSR Yangtze Rolling Stock Co. Ltd.
  • CSR Qishuyan Locomotive & Rolling Stock Works
  • CSR Guiyang Vehicle Co. Ltd.
  • Ningbo Yinzhou District Construction Investment & Development
  • CRRC Investment & Leasing Co., Ltd.
  • Changchun Railway Vehicles Co., Ltd.
  • CSR (Hong Kong) Co. Ltd.
  • Qishuyan Locomotive & Rolling Stock Works Industrial Co.
  • CSR Luoyang Locomotive Co. Ltd.
  • CSR Shijiazhuang Rolling Stock Co., Ltd.
  • Shanghai Electric Transport Co. Ltd.
  • CSR Qingdao Sifang Locomotive & Rolling Stock Co., Ltd.
  • China South Locomotive & Rolling Stock Ziyang Factory
  • Sifang Locomotive & Rolling Stock Co. Ltd.

Competitors

  • Alstom SA
  • Westinghouse Air Brake Technologies Corporation
  • Bombardier Inc. Class B
  • Shenzhen INVT Electric Co., Ltd. Class A
  • Shenzhen Inovance Technology Co., Ltd Class A
  • Hyundai Rotem Co.
Last Updated on 21 Sep, 2018

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