CRRC Corp. Ltd.

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Asian stocks gain as US, China resume talks to resolve trade dispute Aug 30, 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 2018	HKD	USD
Revenue	254,090.99M	32,419.71M
Gross Profit	54,558.74M	6,961.20M
Operating income	14,841.22M	1,893.60M
Income before tax	17,511.03M	2,234.24M
Net income	13,390.30M	1,708.48M
EBITDA	22,142.58M	2,825.19M
Diluted EPS	0.46	0.05
Dividends Per Share	0.17	0.02
Total Assets	407,703.96M	52,073.79M
Total liabilities	230,734.31M	29,470.43M
Total equity	146,487.64M	18,710.06M
Operating cash flow	21,610.81M	2,757.34M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	274,926.46M	293,302.70M	261,886.94M	238,740.01M	254,090.99M
Gross Profit	53,903.85M	57,399.95M	52,611.73M	52,654.56M	54,558.74M
Operating income	18,038.76M	19,384.60M	17,344.42M	14,703.25M	14,841.22M
Income before tax	17,304.64M	20,512.13M	19,238.86M	17,133.65M	17,511.03M
Net income	13,611.58M	14,577.76M	13,191.60M	12,443.36M	13,390.30M
EBITDA	24,209.65M	26,461.54M	24,452.84M	21,699.23M	22,142.58M
Diluted EPS	0.51	0.53	0.48	0.42	0.46
Dividends Per Share	0.14	0.17	0.23	0.18	0.17
Total Assets	373,509.87M	372,008.30M	377,446.27M	450,414.85M	407,703.96M
Total liabilities	240,079.73M	229,824.84M	232,680.27M	273,137.61M	230,734.31M
Total equity	111,616.53M	115,651.10M	116,986.68M	145,954.86M	146,487.64M
Operating cash flow	36,553.01M	17,754.12M	22,186.31M	17,698.61M	21,610.81M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	35,452.96M	37,832.94M	33,737.63M	30,635.90M	32,419.71M
Gross Profit	6,951.13M	7,403.98M	6,777.71M	6,756.80M	6,961.20M
Operating income	2,326.17M	2,500.40M	2,234.39M	1,886.76M	1,893.60M
Income before tax	2,231.50M	2,645.84M	2,478.45M	2,198.64M	2,234.24M
Net income	1,755.27M	1,880.37M	1,699.41M	1,596.77M	1,708.48M
EBITDA	3,121.94M	3,413.25M	3,150.14M	2,784.51M	2,825.19M
Diluted EPS	0.06	0.06	0.06	0.05	0.05
Dividends Per Share	0.01	0.02	0.03	0.02	0.02
Total Assets	48,164.68M	48,000.13M	48,682.95M	57,617.69M	52,073.79M
Total liabilities	30,958.65M	29,654.24M	30,011.06M	34,940.14M	29,470.43M
Total equity	14,393.12M	14,922.43M	15,088.92M	18,670.75M	18,710.06M
Operating cash flow	4,713.66M	2,290.09M	2,858.15M	2,271.14M	2,757.34M

Valuation Measures

Dec 2018
PER	14.35
ROA	3.12%
ROE	9.15%
Operating margin	5.84%
Profit margin	5.26%

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 (5.9%)
Himalaya Capital Management LLC (4.9%)
Baring Asset Management Ltd. (4.9%)
The Vanguard Group, Inc. (3.5%)
BlackRock Fund Advisors (2.6%)
Norges Bank Investment Management (2.2%)
Robeco Institutional Asset Management BV (1.3%)
Fidelity Management & Research Co. LLC (1.2%)
APG Asset Management NV (1.1%)
JPMorgan Asset Management (UK) Ltd. (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

Related Companies

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Wenzhou Zhong CRRC electrica equipment Co., Ltd.
CRRC Logistics Co., Ltd.
CRRC Real Estate Co. Ltd.
CRRC Beijing Nankou Co. Ltd.
CRRC Zhuzhou Electric Locomotive Co. Ltd.
CRRC Qingdao Sifang Rolling Stock Research Institute Co., Ltd.
CRRC Trading 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.
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 Yincheng Group Co., Ltd.
CRRC Investment & Leasing Co., Ltd.
Changchun Railway Vehicles Co., Ltd.

Competitors

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

Last Updated on 21 Feb, 2020