CRRC(601766) 中邮证券·2024-11-05 01:01Investment Rating - The investment rating for the company is "Add" [2][3] Core Views - The company's Q3 2024 report met expectations, with profit growth outpacing revenue growth. For the first three quarters of 2024, the company achieved revenue of 152.58 billion yuan, a year-on-year increase of 6.67%, and a net profit attributable to shareholders of 7.25 billion yuan, up 17.77% year-on-year [2][3] - The railway equipment business significantly contributed to revenue growth, with a 36.69% year-on-year increase in revenue from this segment [2][3] - The company is expected to maintain a positive outlook in the rail transit industry due to strong passenger demand and potential procurement of new trains by the national railway group [2][3] Summary by Sections Company Overview - Total shares: 286.99 million, circulating shares: 243.28 million - Total market value: 242.8 billion yuan, circulating market value: 205.8 billion yuan - 52-week high/low price: 8.60/5.05 yuan - Debt-to-asset ratio: 58.3% - Price-to-earnings ratio: 20.63 - Largest shareholder: China CNR Corporation Limited [1] Financial Performance - For Q3 2024, revenue was 62.54 billion yuan, a year-on-year increase of 12.22%, and net profit was 3.04 billion yuan, up 13.11% year-on-year [2][3] - The railway equipment segment saw a revenue increase of over 80% for both EMUs and passenger cars in the first three quarters [2][3] - The company maintained good cost control, with total expense ratios decreasing by 0.82 percentage points year-on-year [2][3] Earnings Forecast and Valuation - Projected revenues for 2024-2026 are 246.21 billion yuan, 273.85 billion yuan, and 307.27 billion yuan, with year-on-year growth rates of 5.1%, 11.23%, and 12.20% respectively [3] - Expected net profits for the same period are 13.73 billion yuan, 14.93 billion yuan, and 16.53 billion yuan, with growth rates of 17.22%, 8.72%, and 10.74% respectively [3] - Corresponding P/E ratios are projected to be 17.69, 16.27, and 14.69 [3]