CRRC Corp. Ltd.

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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 2018	HKD	USD
Revenue	257,078.90M	32,800.94M
Gross Profit	52,802.28M	6,737.09M
Operating income	14,840.20M	1,893.47M
Income before tax	17,511.03M	2,234.24M
Net income	13,390.30M	1,708.48M
EBITDA	22,670.06M	2,892.49M
Diluted EPS	0.45	0.05
Dividends Per Share	0.17	0.02
Total Assets	407,852.80M	52,092.80M
Total liabilities	230,883.15M	29,489.44M
Total equity	146,487.64M	18,710.06M
Operating cash flow	23,521.45M	3,001.12M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	277,854.83M	296,778.84M	266,230.73M	240,878.74M	257,078.90M
Gross Profit	53,587.69M	56,521.63M	51,463.48M	50,451.01M	52,802.28M
Operating income	18,502.86M	19,708.50M	17,800.54M	14,201.72M	14,840.20M
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	25,123.11M	27,376.45M	25,404.64M	21,692.40M	22,670.06M
Diluted EPS	0.98	0.53	0.47	0.43	0.45
Dividends Per Share	0.14	0.17	0.23	0.18	0.17
Total Assets	373,509.87M	372,008.30M	377,473.68M	450,562.86M	407,852.80M
Total liabilities	239,963.53M	229,819.06M	232,690.13M	273,285.62M	230,883.15M
Total equity	111,616.53M	115,651.10M	116,986.68M	145,954.86M	146,487.64M
Operating cash flow	38,101.44M	18,750.63M	25,196.51M	19,476.97M	23,521.45M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	35,830.58M	38,281.33M	34,297.22M	30,910.35M	32,800.94M
Gross Profit	6,910.36M	7,290.69M	6,629.79M	6,474.04M	6,737.09M
Operating income	2,386.02M	2,542.18M	2,293.15M	1,822.41M	1,893.47M
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	3,239.73M	3,531.27M	3,272.75M	2,783.64M	2,892.49M
Diluted EPS	0.12	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	48,686.49M	57,636.63M	52,092.80M
Total liabilities	30,943.67M	29,653.49M	30,012.33M	34,959.08M	29,489.44M
Total equity	14,393.12M	14,922.43M	15,088.92M	18,670.75M	18,710.06M
Operating cash flow	4,913.34M	2,418.63M	3,245.94M	2,499.34M	3,001.12M

Valuation Measures

Dec 2018
PER	16.37
ROA	3.11%
ROE	9.15%
Operating margin	5.77%
Profit margin	5.20%

Key executives

President, General Manager & 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. (3.4%)
BlackRock Fund Advisors (2.8%)
Norges Bank Investment Management (2.2%)
Robeco Institutional Asset Management BV (1.2%)
Henderson Global Investors Ltd. (0.9%)
JPMorgan Asset Management (UK) Ltd. (0.8%)
FIL Investment Management (Hong Kong) Ltd. (0.8%)
APG Asset Management NV (0.8%)
RWC Asset Advisors (US) LLC (0.7%)

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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Competitors

Alstom SA
Shenzhen INVT Electric Co., Ltd. Class A
Westinghouse Air Brake Technologies Corporation
Bombardier Inc. Class B
Shenzhen Inovance Technology Co., Ltd Class A
Hyundai Rotem Co.

Last Updated on 19 Sep, 2019