Summary of Conference Call on China CRRC's Financial Report Company and Industry - **Company**: China CRRC Corporation Limited - **Industry**: Railway Equipment and Transportation Core Points and Arguments 1. **Positive Outlook on Railway Equipment**: The company maintains a strong outlook on the railway equipment sector, particularly in the context of domestic infrastructure investment under the "internal circulation" strategy [1][2] 2. **Strong Performance Despite Market Conditions**: China CRRC achieved a notable stock price increase following the release of its financial report, indicating resilience in a challenging market environment [2] 3. **Inventory and Contract Liabilities Growth**: The company's inventory and contract liabilities grew by 15% to 20%, while revenue growth was only 6%, attributed to the delivery cycle of railway equipment [3] 4. **High Repair Cycle**: The high repair cycle for railway vehicles is expected to lead to significant revenue recognition in the first half of 2025, as repairs typically have a short turnaround time [4] 5. **Profit Surpassing Expectations**: The company reported profits that exceeded expectations due to a faster growth rate in railway equipment, particularly in the high-margin passenger train segment, and a decrease in expense ratios [5] 6. **Stable Industry Demand**: The demand for new vehicles and high-level repairs remains strong, with an estimated order volume of approximately 17 billion for the last quarter of the previous year [6] 7. **Focus on Asset Quality Improvement**: The company is prioritizing stable profitability and asset quality improvement, with growth being a secondary focus [7] 8. **Future Revenue Projections**: The company anticipates stable performance in 2025, with a cautious outlook on growth rates, while 2026's performance will depend on this year's order volume [8] 9. **Replacement Cycle for Equipment**: The replacement cycle for locomotives is expected to contribute positively to revenue in 2025 and 2026, despite a potential decline in new passenger train orders [9] 10. **Long-term Profitability Potential**: The company aims to achieve profits exceeding 50 billion, driven by stable growth in the railway sector and new industries [10] 11. **Market Recovery Potential**: The company is seen as a stable growth asset, with potential for market recovery and an increase in market capitalization [13] 12. **Overall Industry Sentiment**: The railway equipment sector remains optimistic, with continuous growth in related industries and a stable demand outlook [14] Other Important but Possibly Overlooked Content - **Market Dynamics**: The company is positioned well within the domestic market, with a growing customer base and increasing demand for high-level repairs, which could provide additional revenue streams [12] - **Valuation Considerations**: The current market valuation of the company is seen as attractive, especially in comparison to historical price-to-book ratios, indicating potential for future price appreciation [13]

Investment Rating - The report maintains a "Buy" rating for China CNR Corporation Limited [6][8] Core Views - The company is expected to achieve a revenue of 246.46 billion yuan in 2024, representing a year-on-year growth of 5.21%, with a net profit attributable to shareholders of 12.39 billion yuan, up 5.77% year-on-year [3] - The first quarter of 2025 is projected to see a significant increase in net profit, estimated between 2.82 billion and 3.23 billion yuan, reflecting a year-on-year growth of 180-220% [3] - The railway equipment segment is experiencing strong growth, particularly in the high-speed train business, which is expected to continue benefiting from increased investment in railway infrastructure [5] Company Overview - Latest closing price: 6.99 yuan - Total shares: 2.8699 billion, circulating shares: 2.4328 billion - Total market capitalization: 200.6 billion yuan, circulating market capitalization: 170.1 billion yuan - 52-week high/low: 8.82/6.38 yuan - Debt-to-asset ratio: 59.0% - Price-to-earnings ratio: 16.26 - Largest shareholder: China CNR Group [2] Financial Performance - In 2024, the railway equipment revenue reached 110.46 billion yuan, a year-on-year increase of 12.50%, driven by growth in the high-speed train business [4] - The company sold 1,940 high-speed trains in 2024, with maintenance services generating approximately 41.8 billion yuan in revenue, up 25% year-on-year [4] - The company forecasts revenues of 269.16 billion, 285.93 billion, and 299.99 billion yuan for 2025-2027, with corresponding net profits of 13.23 billion, 14.53 billion, and 15.14 billion yuan [6]

Investment Rating - The report maintains a "Buy" rating for China CNR Corporation Limited [6][8] Core Views - The company is expected to achieve a revenue of 246.46 billion yuan in 2024, with a year-on-year growth of 5.21%, and a net profit attributable to shareholders of 12.39 billion yuan, reflecting a growth of 5.77% [3] - The first quarter of 2025 is projected to show a significant increase in net profit, estimated between 2.82 billion to 3.23 billion yuan, representing a year-on-year growth of 180% to 220% [3] - The railway equipment segment is experiencing strong growth, particularly in the high-speed train business, which is expected to continue benefiting from increased investment in railway infrastructure [5] Company Overview - Latest closing price: 6.99 yuan - Total shares: 2.8699 billion, circulating shares: 2.4328 billion - Total market capitalization: 200.6 billion yuan, circulating market capitalization: 170.1 billion yuan - 52-week high/low: 8.82/6.38 yuan - Debt-to-asset ratio: 59.0% - Price-to-earnings ratio: 16.26 [2] Financial Performance - In 2024, the railway equipment revenue reached 110.46 billion yuan, a year-on-year increase of 12.50%, driven by the growth in the high-speed train business [4] - The company sold 1,940 high-speed trains in 2024, with maintenance services generating approximately 41.8 billion yuan in revenue, a year-on-year increase of 25% [4] - The company forecasts revenues of 269.16 billion yuan, 285.93 billion yuan, and 299.99 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 13.23 billion yuan, 14.53 billion yuan, and 15.14 billion yuan [6]

重要内容提示： ● 晋西车轴股份有限公司（以下简称"公司"）预计2025年第一季度实现归属于上市公司股东的净利润为 700万元到900万元，实现扭亏为盈。预计2025年第一季度实现归属于上市公司股东的扣除非经常性损益 后的净利润为35万元到235万元。 一、本期业绩预告情况 （一）业绩预告期间 2025 年1月1日至 2025 年3月31日。 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容 的真实性、准确性和完整性承担法律责任。 （二）业绩预告情况 经财务部门初步核算，预计 2025年第一季度实现归属于上市公司股东的净利润为700万元到900万元， 与上年同期（法定披露数据）相比，将增加3,061.53万元到3,261.53万元，实现扭亏为盈。 2025年第一季度，公司铁路车辆、车轴产品产销量较上年同期增加，本期营业收入和净利润同比增长。 四、风险提示 公司本期业绩预告基于公司财务部门根据自身专业判断，未经注册会计师审计。截至目前，公司未发现 影响本次业绩内容准确性的重大不确定因素。 五、其他说明事项 预计2025年第一季度实现归属于上市公司股东的扣除非经常性损益后 ...

Investment Rating - The report maintains a "Buy" rating for the company, expecting significant price appreciation in the next 6-12 months [6]. Core Views - The company anticipates a substantial increase in net profit for Q1 2025, projecting a range of RMB 28.22 billion to RMB 32.26 billion, representing a year-on-year growth of 180% to 220% [2][3]. - The demand for high-speed trains is recovering, with expectations for continued revenue growth in the company's train business due to increased bidding and delivery volumes [4][5]. - The maintenance and repair segment of the railway equipment is expected to see a rise in revenue, with a projected growth of 25.2% in 2024 [5]. Summary by Sections Event - On April 7, the company announced an expected net profit for Q1 2025 of RMB 28.22 billion to RMB 32.26 billion, marking a significant increase from the previous year [2]. Operational Analysis - The increase in product delivery volumes and the substantial rise in train bids from the national railway group are key drivers for the company's revenue growth in the train segment [3]. - The national railway's target for passenger volume and infrastructure investment in 2025 indicates a positive outlook for railway equipment demand [4]. Profit Forecast, Valuation, and Rating - Revenue projections for the company are RMB 266.7 billion, RMB 287.1 billion, and RMB 308.4 billion for 2025, 2026, and 2027 respectively, with net profits expected to be RMB 13.48 billion, RMB 14.67 billion, and RMB 15.94 billion [6].

Summary of Jinxi Axle Co., Ltd. Non-Operating Fund Occupation and Other Related Fund Transactions Audit Report Core Viewpoint The audit report provides a detailed overview of non-operating fund occupations and related transactions involving Jinxi Axle Co., Ltd., highlighting the financial interactions with its controlling shareholders and affiliated enterprises. Group 1: Non-Operating Fund Occupation - The report outlines the non-operating fund occupation by controlling shareholders and their affiliated enterprises, detailing the amounts involved and the nature of these transactions [2][3][6]. - Specific figures indicate that the total non-operating fund occupation amounts to 1,495.02 million yuan, with a cumulative occurrence of 17,295.50 million yuan [7]. Group 2: Related Party Transactions - The report lists various related party transactions, including sales of goods and provision of services, with significant amounts recorded for accounts receivable [4][5]. - For instance, transactions with Jinxi Industrial Group and other related parties show substantial figures, such as 440.00 million yuan for accounts receivable from Jinxi Industrial Group [3][5]. Group 3: Financial Relationships - The audit highlights the financial relationships between Jinxi Axle Co., Ltd. and its controlling shareholders, emphasizing the nature of these transactions as either operational or non-operational [2][6]. - The report also notes that the transactions are primarily categorized under sales of goods and service provisions, indicating a mix of operational and non-operational financial interactions [4][6].

Investment Rating - The report maintains a "Buy" rating for China CRRC Corporation Limited (601766.SH) [9][12]. Core Views - The railway equipment sector is experiencing an upward trend, with revenue from high-speed trains and railway maintenance services increasing. The new strategic industries are expanding rapidly. Looking ahead to 2025, the first tender for high-speed train major repairs has been launched, indicating continued growth in the high-speed train business and potential improvements in locomotive operations, alongside the development of new strategic industries, suggesting stable operational growth for the company [2][12]. Financial Performance - In 2024, the company achieved revenue of 246.46 billion yuan, a year-on-year increase of 5.21%, and a net profit attributable to shareholders of 12.39 billion yuan, up 5.77% year-on-year. In Q4 2024, revenue reached 93.87 billion yuan, a year-on-year increase of 2.9% and a quarter-on-quarter increase of 50.09%. The net profit for Q4 was 5.14 billion yuan, down 7.51% year-on-year but up 68.93% quarter-on-quarter [6][12]. Business Segment Analysis - The railway equipment business generated revenue of 110.46 billion yuan in 2024, a year-on-year increase of 12.50%, primarily driven by a nearly 50% increase in high-speed train revenue, which amounted to 62.43 billion yuan. The gross margin for this segment was 24.72%, up 1.00 percentage point year-on-year. The urban rail and infrastructure segment saw revenue decline by 9.72% to 45.44 billion yuan, while the new strategic industries generated 86.38 billion yuan, up 7.13% year-on-year, mainly due to increased revenue from clean energy equipment [12][12]. Market and Order Status - The domestic market revenue for 2024 was 218.12 billion yuan, a year-on-year increase of 5.61%, accounting for 88.5% of total revenue. The company secured new orders worth 322.2 billion yuan in 2024, an increase of 8% year-on-year, with overseas orders amounting to 47.2 billion yuan. As of the end of 2024, the company had a backlog of orders totaling 318.1 billion yuan, up 18% year-on-year, indicating a historically high order level and expected stable growth in operations for 2025 [12][12]. Research and Development - The company maintained high R&D investment, totaling 16.69 billion yuan in 2024, which accounted for 6.77% of revenue. This commitment to R&D is expected to support the company's growth and innovation in the railway equipment and new strategic industries [12][12].

Investment Rating - The report maintains a "Buy" rating for China CRRC (601766) with a target price of 8.46 CNY over the next six months, compared to the current price of 7.06 CNY [1][12]. Core Insights - The company reported a revenue of 246.46 billion CNY for 2024, representing a year-on-year growth of 5.2%. The net profit attributable to the parent company was 12.39 billion CNY, up 5.8% year-on-year. The significant growth in the high-speed train business, with a revenue increase of 49.3%, was a key driver of this performance [7][12]. - The railway equipment segment led the growth, achieving a revenue of 110.46 billion CNY, a 12.5% increase year-on-year, with an improved gross margin of 24.7% [7][12]. - The company is expected to benefit from the replacement policy for equipment and the increased volume of high-speed train maintenance, which is projected to drive stable growth in performance [7][12]. Summary by Sections Financial Performance - For 2024, the company achieved a revenue of 2464.57 billion CNY, with a net profit of 123.88 billion CNY. The fourth quarter saw a revenue of 938.7 billion CNY, a 2.9% increase year-on-year, but a net profit decline of 7.5% [2][7]. - The gross margin for 2024 was 21.4%, an increase of 0.8 percentage points year-on-year, while the net margin was 6.4%, up 0.1 percentage points [7][12]. Revenue Projections - Revenue is projected to grow to 2668.35 billion CNY in 2025, 2845.91 billion CNY in 2026, and 2976.35 billion CNY in 2027, with respective growth rates of 8.27%, 6.65%, and 4.58% [2][8]. - The net profit attributable to the parent company is expected to reach 136.04 billion CNY in 2025, 146.20 billion CNY in 2026, and 156.60 billion CNY in 2027, with a compound annual growth rate of 8% [2][12]. Business Segments - The railway equipment segment is expected to see a revenue increase of 15%, 10%, and 5% from 2025 to 2027, driven by stable bidding for vehicles and maintenance services [8][12]. - The urban rail segment is projected to experience a slight decline in revenue growth, while the new industries segment is expected to grow at a rate of 5% annually [8][12]. Valuation - The report suggests a price-to-earnings (PE) ratio of 18 for 2025, indicating a target price of 8.46 CNY, reflecting the company's leading position in the rail transportation sector [12][12].

Investment Rating - The report maintains a "Buy" rating for China CNR Corporation (601766) with a target price of 8.46 CNY over the next six months, compared to the current price of 7.06 CNY [1][12]. Core Insights - The company reported a revenue of 246.46 billion CNY for 2024, representing a year-on-year growth of 5.2%. The net profit attributable to the parent company was 12.39 billion CNY, up 5.8% year-on-year. The significant growth in the high-speed train business, with a revenue increase of 49.3%, was a key driver of this performance [7][12]. - The railway equipment segment led the growth, achieving a revenue of 110.46 billion CNY, a 12.5% increase year-on-year, with an improved gross margin of 24.7% [7][12]. - The company is expected to benefit from the replacement policy for equipment and the increased volume of high-speed train maintenance, which is projected to drive stable growth in performance [7][12]. Financial Performance Summary - **Revenue Forecast**: The company anticipates revenues of 266.83 billion CNY in 2025, 284.59 billion CNY in 2026, and 297.63 billion CNY in 2027, with growth rates of 8.27%, 6.65%, and 4.58% respectively [2][8]. - **Net Profit Forecast**: Expected net profits for 2025, 2026, and 2027 are 13.60 billion CNY, 14.62 billion CNY, and 15.66 billion CNY, with compound annual growth of 8% [2][12]. - **Earnings Per Share (EPS)**: Projected EPS for the next three years is 0.47 CNY in 2025, 0.51 CNY in 2026, and 0.55 CNY in 2027 [2][12]. - **Valuation Metrics**: The price-to-earnings (PE) ratio is expected to decrease from 15 in 2025 to 13 in 2027, indicating a favorable valuation trend [2][12]. Business Segment Analysis - **Railway Equipment**: This segment is projected to grow at rates of 15%, 10%, and 5% from 2025 to 2027, with a gross margin improvement expected due to the higher proportion of high-speed train maintenance [8][12]. - **Urban Rail and Infrastructure**: Expected to see slight declines in revenue growth, with projections of -1.0% in 2025, 0.3% in 2026, and 1.4% in 2027 [9][12]. - **New Industries**: This segment is anticipated to grow at a steady rate of 5% annually from 2025 to 2027, benefiting from the company's technological advantages [9][12].

Core Insights - The company achieved a revenue of 246.46 billion yuan in 2024, representing a year-on-year increase of 5.21%, and a net profit attributable to shareholders of 12.39 billion yuan, up 5.77% year-on-year [1] - The growth in revenue is primarily driven by the recovery of fixed asset investment in railways, with significant increases in new train procurement and major repairs [1][3] Financial Performance - The company's gross profit margin for 2024 was 21.38%, a decrease of 0.89 percentage points year-on-year, while the net profit margin improved slightly to 6.36%, an increase of 0.14 percentage points year-on-year [2] - In Q4 2024, the company reported a revenue of 93.87 billion yuan, a year-on-year increase of 2.90%, but a decline in net profit attributable to shareholders by 7.51% to 5.14 billion yuan [1][2] Business Segments - The railway equipment segment generated revenue of 110.46 billion yuan, up 12.50% year-on-year, while the urban rail segment saw a decline of 9.72% to 45.44 billion yuan [1] - The new industries segment achieved revenue of 86.38 billion yuan, an increase of 7.13%, while the modern services segment experienced a significant decline of 18.22% to 4.18 billion yuan [1] Cash Flow and Liabilities - As of the end of 2024, the company's contract liabilities increased by 21.60% to 28.18 billion yuan, and inventory rose by 18.10% to 78.95 billion yuan, indicating a strong order backlog [3] - The net cash flow from operating activities for 2024 was 27.13 billion yuan, a substantial increase of 84.27% year-on-year [3] Market Outlook - The company has adjusted its net profit forecasts for 2025-2026 to 13.81 billion yuan and 14.88 billion yuan, respectively, while projecting a net profit of 16.03 billion yuan for 2027 [4] - The current stock price corresponds to dynamic PE ratios of 15, 14, and 13 times for the years 2025, 2026, and 2027, respectively, maintaining a "buy" rating [4]