CRCC High-Tech Equipment (1786) AI Stock Analysis

• Market Cap: HK$1.32B
• Dividend Yield: 3.79%
• Average Volume (3M): 459.50K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.59
• Revenue Growth: -1.50%
• EPS Growth: -12.52%
• Country: HK
• Employees: 1,912
• Sector: Industrials
• Sector Strength: 87
• Industry: Railroads
• EPS (TTM): 0.09
• Shares Outstanding: 531,900,000
• 10 Day Avg. Volume: 521,150
• 30 Day Avg. Volume: 459,500
• PEG Ratio: 0.05
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ―

CRCC High-Tech Equipment has a strong financial foundation with consistent revenue growth, improved gross margins, and robust cash flow generation. However, the technical analysis indicates bearish momentum, suggesting potential short-term challenges. The attractive valuation with a low P/E ratio and high dividend yield enhances its investment appeal. Despite some operational efficiency challenges, the company's overall financial health supports a favorable outlook.

CRCC High-Tech Equipment Business Overview & Revenue Model

Company Description

CRCC High-Tech Equipment Corporation Limited, a subsidiary of China Railway Construction Corporation Limited, operates within the high-tech manufacturing sector. The company specializes in the development, production, and sale of large-scale railway track maintenance machinery and equipment. Its core products include rail tamping, ballast cleaning, and track-laying machines, which are crucial for the construction and maintenance of railway infrastructure.

How the Company Makes Money

CRCC High-Tech Equipment generates revenue primarily through the sale and leasing of its specialized railway equipment. The company benefits from strong demand in China and international markets for railway infrastructure development, providing a steady stream of income from both direct sales and long-term leasing contracts. Additionally, after-sales services, including maintenance and spare parts supply, contribute to its earnings. Strategic partnerships and collaborations with railway operators and government entities also enhance the company's market position and revenue potential.

CRCC High-Tech Equipment Financial Statement Overview

Summary

CRCC High-Tech Equipment demonstrates strong financial health with consistent revenue growth, improved gross margins, and a robust balance sheet with minimal leverage. Despite a slight decline in net profit margins, the company maintains a solid position in cash flow generation. The overall financial stability and growth trajectory are positive, with potential areas for improvement in profitability and operational efficiency.

Income Statement

The company exhibits solid revenue growth with a 0.63% increase from 2023 to 2024, following a 9.86% increase the previous year. Gross profit margin improved to 18.90% in 2024, up from 12.91% in 2023, indicating better cost management. However, net profit margin slightly decreased to 4.11% from 4.68%, highlighting some challenges in maintaining net profitability. EBIT margin remains steady at around 4.42%, with EBITDA margin showing a decline from 9.21% to 7.31%, suggesting increased operational challenges.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.003, reflecting minimal leverage and a robust equity base. Return on equity (ROE) decreased slightly to 2.12% in 2024, compared to 2.47% in 2023, indicating some erosion in shareholder returns. The equity ratio remains healthy at 65.98%, showcasing a stable financial position with substantial equity backing.

Cash Flow

The company shows a significant increase in free cash flow, growing by 339.40% from 2023 to 2024, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 2.21 in 2024 suggests strong cash earnings. However, the free cash flow to net income ratio also improved to 2.00, highlighting substantial free cash flow relative to net income, despite some fluctuations in cash flow components.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.12B	3.10B	2.82B	2.19B	1.55B
Gross Profit	589.70M	400.14M	663.25M	545.00M	435.76M
EBITDA	227.96M	285.37M	232.37M	157.41M	86.67M
Net Income	128.21M	145.04M	115.64M	50.38M	22.16M
Balance Sheet
Total Assets	9.15B	9.06B	8.58B	8.27B	7.32B
Cash, Cash Equivalents and Short-Term Investments	1.75B	1.46B	1.16B	1.18B	1.71B
Total Debt	16.09M	20.00M	17.04M	1.03B	2.01M
Total Liabilities	3.08B	3.18B	2.66B	2.39B	1.87B
Stockholders Equity	6.04B	5.86B	5.90B	5.88B	5.45B
Cash Flow
Free Cash Flow	256.35M	58.34M	―	―	-68.46M
Operating Cash Flow	283.18M	86.57M	22.44M	―	-5.56M
Investing Cash Flow	―	244.81M	―	―	-58.44M
Financing Cash Flow	-26.43M	-37.85M	―	―	-60.40M

CRCC High-Tech Equipment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1786, the sentiment is Positive. The current price of 0.87 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.78, and above the 200-day MA of 0.77, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.50 is Negative, neither overbought nor oversold. The STOCH value of 100.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1786.

CRCC High-Tech Equipment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3908	72 Outperform	$147.46B	12.24	5.84%	1.11%	-9.55%	24.91%
Sector *	71 Outperform	¥255.65B	12.95	8.49%	3.09%	6.31%	12.94%
3303	69 Neutral	$1.41B	6.73	8.83%	4.55%	-20.69%	-30.40%
1786	69 Neutral	HK$1.32B	9.51	2.16%	3.79%	-1.50%	-12.52%
1157	67 Neutral	$65.70B	13.42	6.96%	5.67%	-5.32%	-2.93%

CRCC High-Tech Equipment Corporate Events

CRCC High-Tech Equipment Reports Steady Revenue Growth in 2024

CRCC High-Tech Equipment announced its audited annual results for the year ending December 31, 2024, showcasing a steady revenue increase to RMB 3,119,621,000. Despite a slight decrease in profit for the year compared to 2023, the company maintained a strong financial position with total assets amounting to RMB 9,150,875,000 and net assets of RMB 6,074,271,000. The announcement reflects the company’s stable growth trajectory and adherence to Mainland Accounting Standards, indicating a robust operational framework and a commitment to transparency for stakeholders.

CRCC High-Tech Equipment Announces Final Dividend for 2024

CRCC High-Tech Equipment Corporation Limited has announced a final ordinary cash dividend of RMB 0.028 per share for the financial year ending December 31, 2024, with payment scheduled for August 22, 2025. This announcement reflects the company’s stable financial performance and commitment to delivering shareholder value, potentially strengthening its market position and investor confidence.

CRCC High-Tech Equipment Schedules Board Meeting to Approve 2024 Results

CRCC High-Tech Equipment Corporation Limited has announced a board meeting scheduled for March 27, 2025, to discuss and approve the company’s final results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.