CRRC(SH:601766) Haitong Securities·2025-03-14 15:36Investment Rating - The investment rating for the report on the specific company is "Outperform the Market" [2]. Core Viewpoints - The specific company is a global leader in rail transit equipment, benefiting from significant state-owned enterprise reforms and emphasizing dividends and market value management. It has maintained stable revenue and profit growth since the merger of "South North Car" in 2015, with a focus on optimizing its business structure to support profitability [5][6][10]. Summary by Sections 1. Global Rail Transit Equipment Leader - The specific company is the largest and most comprehensive rail transit equipment supplier globally, with products that meet world-class standards and are exported to nearly 100 countries [17][18]. - The company is backed by the State-owned Assets Supervision and Administration Commission, with a significant shareholding by the parent group, reflecting confidence in its long-term development [18]. 2. Railway Equipment: Clear Construction Planning - The railway construction sector has a strong planning characteristic, with expected fixed asset investments increasing by 8% year-on-year in 2025, supporting vehicle procurement and maintenance needs [6]. - The demand for new high-speed trains is expected to remain robust, with an estimated procurement of 258 new trains in 2025, and maintenance needs projected to exceed 500 units annually from 2025 to 2030 [6][7]. 3. Financial Data and Forecasts - The specific company achieved revenues of 234,262 million yuan in 2023, with a year-on-year growth of 5.1%. The net profit for the same year was 11,712 million yuan, reflecting a slight increase of 0.5% [8]. - Forecasts indicate revenues of 256,330 million yuan in 2024, with a projected growth of 9.4%, and net profits expected to reach 13,474 million yuan, a 15% increase [8][10]. 4. New Industries: High-Speed Rail Technology Synergy - The company views clean energy equipment as a significant growth area, with strong growth in wind power orders and a focus on new energy vehicles and materials [10][21]. - The new materials sector is expected to contribute more to the company's performance as new production facilities come online [10]. 5. Profitability and Valuation - The company is projected to achieve a net profit of 14,748 million yuan in 2025, with a reasonable valuation range of 8.22 to 9.76 yuan per share based on a PE ratio of 16-19 times [10][11].