广发证券-铁建装备(01786.HK)1H17 net profit down 87.5% on order delays; downgrade to Ac-20170731

Disappointing 1H17 results CRCCE's 1H17 revenue declined 45% YoY to Rmb930m,and net profit was down 87.5% YoY to Rmb26m. GPM was flat at 26.1%. Thedisappointing results were due to: 1) China Railway Corporation postponing purchases ofthe company's railway maintenance machines, resulting in a slump in machines sold in1H17. 2) Research and development costs increasing by Rmb20m during the period. 3)Finance costs rising by Rmb35m due to an increase in interest on discounted long-termtrade receivables. ...