CRCC High-Tech Equipment (1786) AI Stock Analysis

• Market Cap: HK$1.35B
• Dividend Yield: 3.48%
• Average Volume (3M): 370.16K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.62
• Revenue Growth: -3.37%
• EPS Growth: -17.55%
• Country: HK
• Employees: 1,912
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.05
• Shares Outstanding: 531,900,000
• 10 Day Avg. Volume: 300,634
• 30 Day Avg. Volume: 370,161
• PEG Ratio: -0.72
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 4.18
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$0.97 ▲(8.99% Upside)

The score is primarily supported by financial resilience (very low leverage and improved cash generation) and a favorable valuation (low P/E and moderate dividend yield). These are tempered by weak technical momentum and recent margin compression alongside slightly declining revenue.

Positive Factors

Strong Balance Sheet

The company's strong balance sheet with low leverage provides financial flexibility and reduces refinancing risk, supporting long-term stability.

Improved Cash Generation

Improved cash generation indicates better financial health and supports the company's ability to fund operations and growth initiatives sustainably.

Management and Governance Enhancements

Strengthened governance and management structure can enhance strategic execution and operational efficiency, supporting long-term growth.

Negative Factors

Declining Revenue

Declining revenue suggests a challenging demand environment, which could pressure profitability and limit growth opportunities over the medium term.

Margin Compression

Compressed margins indicate reduced pricing power and cost pressures, potentially impacting the company's ability to invest in growth and innovation.

Cash Flow Volatility

Volatile cash flow can create uncertainty in financial planning and may affect the company's ability to maintain consistent investment and dividend policies.

CRCC High-Tech Equipment Business Overview & Revenue Model

Company Description

CRCC High-Tech Equipment Corporation Limited engages in the research, development, manufacture, and sale of large railway track maintenance machinery in Mainland China and internationally. Its railway track maintenance machines include tamping machines; ballast cleaning machines; stabilization machines; ballast regulators; materials logistics machines; and rail processing machines; as well as other machines, such as catenary inspection and maintenance machines, catenary installation machines, and other large railway track maintenance machines. The company manufactures, purchases, and sells various parts and components comprising bogies, electrical control systems, working devices, wheelsets, transmissions, pumps, valves, motors, and drive shafts. It also provides overhaul services, including repairs, upgradation, and remanufacturing services; and railway lines maintenance services for newly built and existing railway lines. The company was formerly known as Kunming China Railway Large Maintenance Machinery Group Co., Ltd. and changed its name to CRCC High-Tech Equipment Corporation Limited in June 2015. The company was founded in 1954 and is headquartered in Kunming, China. CRCC High-Tech Equipment Corporation Limited is a subsidiary of China Railway Construction Corporation Limited.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	3.12B	3.10B	2.82B	2.19B	1.56B
Gross Profit	549.94M	589.70M	400.14M	663.25M	545.00M	445.83M
EBITDA	235.39M	227.96M	285.37M	219.66M	157.41M	86.67M
Net Income	133.58M	128.21M	145.04M	115.64M	50.38M	22.16M
Balance Sheet
Total Assets	9.07B	9.15B	9.06B	8.58B	8.27B	7.32B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.75B	1.46B	1.16B	1.18B	1.71B
Total Debt	16.33M	16.09M	20.00M	21.91M	1.03B	2.01M
Total Liabilities	3.01B	3.08B	3.18B	2.66B	2.39B	1.87B
Stockholders Equity	6.03B	6.04B	5.86B	5.90B	5.88B	5.45B
Cash Flow
Free Cash Flow	237.26M	256.35M	58.34M	-31.71M	-543.95M	-68.46M
Operating Cash Flow	257.15M	283.18M	86.57M	22.44M	-407.91M	-5.56M
Investing Cash Flow	-387.52M	―	244.81M	-49.07M	-118.99M	-58.44M
Financing Cash Flow	-45.73M	-26.43M	-37.85M	-240.62K	0.00	-60.40M

CRCC High-Tech Equipment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1786, the sentiment is Neutral. The current price of 0.89 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.93, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
0066	76 Outperform	HK$186.32B	10.71	9.59%	4.35%	-0.99%	80.58%
3898	76 Outperform	$68.43B	11.94	9.42%	4.07%	14.48%	12.74%
1786	68 Neutral	HK$1.35B	9.48	2.21%	3.48%	-3.37%	-17.55%
3969	65 Neutral	HK$60.00B	9.77	7.39%	5.51%	0.19%	4.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0525	63 Neutral	HK$22.35B	15.80	4.61%	3.48%	―	―
2169	51 Neutral	HK$2.96B	43.20	7.66%	0.87%	-14.80%	11.92%

CRCC High-Tech Equipment Corporate Events

CRCC High-Tech Equipment Announces Key Board and Management Appointments

CRCC High-Tech Equipment Corporation Limited announced the successful passing of all resolutions during its second extraordinary general meeting held on December 4, 2025. Key outcomes included the re-election of the board, election of an employee director, and appointments of senior management members. These decisions are expected to strengthen the company’s governance structure and support its strategic objectives, potentially enhancing its market position and operational efficiency.

CRCC High-Tech Equipment Announces Board Roles and Functions

CRCC High-Tech Equipment Corporation Limited has announced the composition of its board of directors and their respective roles within various committees. This announcement underscores the company’s commitment to strategic governance and risk management, potentially strengthening its industry position and providing clarity for stakeholders regarding leadership responsibilities.

CRCC High-Tech Equipment Announces Board Re-Election at 2025 EGM

CRCC High-Tech Equipment Corporation Limited has announced the convening of its 2025 second extraordinary general meeting to elect the fourth session of its Board of Directors. The meeting will address the election of executive, non-executive, and independent non-executive directors, marking a significant step in the company’s governance as it transitions to a new board. This re-election is in accordance with the expiration of the third session’s tenure and aligns with the company’s articles of association, potentially impacting the company’s strategic direction and stakeholder engagement.

CRCC High-Tech Equipment Announces Board Restructuring

CRCC High-Tech Equipment, a company incorporated in the People’s Republic of China, announced the proposed election of non-employee directors for its fourth session of the Board. The company is focusing on restructuring its board to include a mix of executive, non-executive, and independent non-executive directors, with the election subject to shareholder approval at an upcoming extraordinary general meeting. This move is expected to impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relations.

CRCC High-Tech Equipment Restructures Governance with EGM Resolutions

CRCC High-Tech Equipment Corporation Limited announced the successful passage of all resolutions during its 2025 first extraordinary general meeting, including the abolition of the supervisory committee. This decision reflects a strategic shift in the company’s governance structure, potentially impacting its operational efficiency and stakeholder engagement.