CRRC(601766) 广发证券·2024-08-04 02:31Investment Rating - The report assigns a "Buy" rating for both A-shares and H-shares of the company [3]. Core Views - The company has exceeded expectations with its advanced repair orders, doubling the total compared to last year, with a total of 460 billion yuan in contracts signed for June-July 2024, including 137 billion yuan for high-speed trains [1]. - A new wave of major maintenance cycles for rail transit is underway, with the company’s repair income expected to enter a definitive upward phase as high-speed trains enter the fifth-level repair cycle [1]. - Higher profit margins and shorter delivery cycles in the maintenance business are expected to enhance the company's earnings flexibility, with significant growth in high-level repair and major repair orders anticipated [1]. - Profit forecasts indicate that the company's net profit attributable to shareholders will reach 13.8 billion yuan, 15.6 billion yuan, and 17.1 billion yuan for 2024-2026, respectively, with a target PE valuation of 18x for A-shares, corresponding to a fair value of 8.67 yuan per share [1][3]. Financial Summary - Revenue for 2022 was 222.94 billion yuan, with a projected increase to 234.26 billion yuan in 2023 and further growth to 262.17 billion yuan in 2024, reflecting a growth rate of 11.9% [2]. - The company's net profit for 2022 was 11.65 billion yuan, with an expected increase to 13.82 billion yuan in 2024, representing an 18% growth rate [2]. - The report indicates an EBITDA of 20.47 billion yuan for 2022, projected to grow to 24.17 billion yuan in 2024 [2].