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Zhuzhou CRRC Times Electric Co Ltd Class H (HK:3898)
:3898

Zhuzhou CRRC Times Electric Co (3898) AI Stock Analysis

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HK

Zhuzhou CRRC Times Electric Co

(OTC:3898)

Rating:77Outperform
Price Target:
Zhuzhou CRRC Times Electric Co is well-positioned with strong financial performance and reasonable valuation, making it an attractive investment in the railroads industry. While technical indicators suggest some caution due to bearish momentum, the company's solid fundamentals and dividend yield provide a balanced risk-reward profile. Further improvements in free cash flow and ROE could enhance shareholder value.

Zhuzhou CRRC Times Electric Co (3898) vs. iShares MSCI Hong Kong ETF (EWH)

Zhuzhou CRRC Times Electric Co Business Overview & Revenue Model

Company DescriptionZhuzhou CRRC Times Electric Co., Ltd. (3898) is a prominent subsidiary of CRRC Corporation Limited, headquartered in Zhuzhou, China. It specializes in the research, development, and manufacturing of electrical and electronic systems used primarily in rail vehicles. The company plays a crucial role in providing propulsion and control systems, power supply systems, and other critical components that enhance the performance and safety of trains and urban rail transit vehicles globally.
How the Company Makes MoneyZhuzhou CRRC Times Electric Co. generates revenue primarily by designing, manufacturing, and selling electrical and electronic systems for rail transit equipment. Its key revenue streams include sales of propulsion and control systems, power converters, and auxiliary power supply systems. The company also earns from after-sales services, which involve maintenance and technical support for its products. Additionally, it benefits from strategic partnerships and collaborations with global railway operators and manufacturers, enabling it to expand its market presence and increase sales. Factors such as increasing investments in railway infrastructure and urban transit systems worldwide significantly contribute to its earnings.

Zhuzhou CRRC Times Electric Co Financial Statement Overview

Summary
Zhuzhou CRRC Times Electric Co exhibits a strong financial position characterized by solid profitability, minimal leverage, and improving cash flows. While growth in revenues is modest, the company maintains robust profit margins and a stable balance sheet. Enhanced ROE and free cash flow generation could further strengthen its financial health.
Income Statement
85
Very Positive
Zhuzhou CRRC Times Electric Co shows strong profitability with a high gross profit margin of 32.3% and net profit margin of 14.8% for the TTM. Revenue has grown by 3.11% compared to the previous year, indicating positive growth, although at a slow pace. The EBIT margin is robust at 17.4%, reflecting efficient cost management. Overall, the company maintains a healthy and stable income profile, though future growth acceleration would be beneficial.
Balance Sheet
80
Positive
The balance sheet of Zhuzhou CRRC Times Electric Co is solid with a low debt-to-equity ratio of 0.008, indicating minimal leverage risk. Return on equity stands at 9.1% for the TTM, a reasonable figure but with room for improvement. The equity ratio of 62.1% demonstrates strong financial stability and shareholder protection. The company's balance sheet is robust, though enhancing ROE could add value to shareholders.
Cash Flow
78
Positive
The cash flow situation is positive with a significant improvement in free cash flow from negative to positive. The operating cash flow to net income ratio is 1.03, suggesting effective conversion of earnings into cash. However, the free cash flow to net income ratio of 0.06 shows a need for improvement in free cash generation. Overall, cash flows are stable, but optimizing free cash conversion is crucial.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
25.52B24.75B21.80B18.03B15.12B16.03B
Gross Profit
8.26B6.71B7.33B5.89B5.10B5.97B
EBIT
4.45B4.32B3.32B2.93B2.10B2.78B
EBITDA
4.52B5.58B4.34B3.77B2.60B3.28B
Net Income Common Stockholders
3.77B3.70B3.11B2.56B2.02B2.48B
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.40B17.84B13.83B14.59B15.85B8.86B
Total Assets
66.47B64.80B53.40B48.51B44.15B33.87B
Total Debt
335.88M6.21B5.34B3.34B2.23B2.30B
Net Debt
-10.01B-4.45B-2.56B-4.16B-5.99B-2.83B
Total Liabilities
21.91B20.04B15.69B13.21B10.86B9.61B
Stockholders Equity
41.27B41.53B37.00B34.53B32.62B23.85B
Cash FlowFree Cash Flow
220.51M-89.41M-198.63M1.09B1.18B-107.81M
Operating Cash Flow
3.90B3.36B2.78B2.04B2.15B1.75B
Investing Cash Flow
-6.97B-3.20B-2.28B-2.26B-6.01B-629.72M
Financing Cash Flow
1.37B456.25M-589.06M-591.38M6.97B-545.24M

Zhuzhou CRRC Times Electric Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price32.25
Price Trends
50DMA
32.18
Positive
100DMA
32.08
Positive
200DMA
30.86
Positive
Market Momentum
MACD
0.11
Positive
RSI
38.81
Neutral
STOCH
9.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3898, the sentiment is Neutral. The current price of 32.25 is below the 20-day moving average (MA) of 33.52, above the 50-day MA of 32.18, and above the 200-day MA of 30.86, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 38.81 is Neutral, neither overbought nor oversold. The STOCH value of 9.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3898.

Zhuzhou CRRC Times Electric Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$174.13B11.038.65%6.36%5.32%102.27%
77
Outperform
$48.81B11.399.62%2.59%11.54%16.09%
75
Outperform
HK$20.69B9.563.59%4.09%12.26%
69
Neutral
HK$1.25B8.962.16%4.02%-1.50%-12.52%
66
Neutral
$4.49B12.225.40%3.71%4.17%-11.97%
64
Neutral
$54.56B9.777.63%5.43%-10.19%0.17%
48
Neutral
HK$7.20B113.217.42%0.36%-27.29%-5.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3898
Zhuzhou CRRC Times Electric Co
32.25
2.16
7.18%
HK:2169
Canggang Railway Limited
1.87
0.94
101.08%
HK:0066
MTR
27.55
3.57
14.89%
HK:3969
China Railway Signal & Communication
3.45
0.29
9.18%
HK:0525
Guangshen Railway Company
1.88
-0.27
-12.60%
HK:1786
CRCC High-Tech Equipment
0.82
0.15
22.39%

Zhuzhou CRRC Times Electric Co Corporate Events

Zhuzhou CRRC Times Electric Announces Final Dividend for 2024
Jun 5, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced a final cash dividend of RMB 1 per share for the financial year ending December 31, 2024, with shareholder approval set for June 27, 2025. The dividend will be paid on August 8, 2025, with specific tax rates applied to non-resident enterprise shareholders and domestic individual investors, reflecting the company’s commitment to shareholder returns and its strategic financial management.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$34.20 price target. To see the full list of analyst forecasts on Zhuzhou CRRC Times Electric Co stock, see the HK:3898 Stock Forecast page.

Zhuzhou CRRC Times Electric Announces 2024 AGM and Dividend Plans
Jun 5, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced its annual general meeting (AGM) for 2024, scheduled for June 27, 2025, in Zhuzhou, China. During the AGM, shareholders will consider various resolutions, including the approval of the 2024 annual report, work reports of the board and supervisory committee, profit distribution plans, and amendments to the Articles of Association. The company also plans to discuss the abolition of the Supervisory Committee and the issuance and repurchase of shares. A cash dividend of RMB1.00 per share has been recommended, with distribution expected in August 2025, reflecting the company’s commitment to shareholder returns.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$34.20 price target. To see the full list of analyst forecasts on Zhuzhou CRRC Times Electric Co stock, see the HK:3898 Stock Forecast page.

Zhuzhou CRRC Times Electric Schedules 2025 H Shares Meeting
Jun 5, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced the scheduling of its first class meeting of holders of H shares for 2025, set to take place on June 27, 2025, in Zhuzhou, China. The meeting will address a special resolution concerning the grant of a general mandate to the board of directors for the repurchase of H shares, indicating a strategic move to potentially enhance shareholder value and optimize capital structure.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on Zhuzhou CRRC Times Electric Co stock, see the HK:3898 Stock Forecast page.

Zhuzhou CRRC Times Electric Co Restructures Governance and Proposes Interim Profit Distribution
May 27, 2025

Zhuzhou CRRC Times Electric Co has announced the proposed abolition of its Supervisory Committee, with the audit committee under the Board taking over its functions. This move, along with amendments to the Articles of Association and meeting rules, aims to streamline governance in line with new regulations. Additionally, the company seeks authorization for the Board to determine interim profit distribution, reflecting a commitment to enhancing investor returns based on the company’s profitability and cash flow position.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$34.20 price target. To see the full list of analyst forecasts on Zhuzhou CRRC Times Electric Co stock, see the HK:3898 Stock Forecast page.

Zhuzhou CRRC Times Electric Releases Q1 2025 Financial Results
Apr 29, 2025

Zhuzhou CRRC Times Electric Co., Ltd. announced its unaudited financial results for the first quarter of 2025, highlighting the company’s adherence to Chinese Accounting Standards. The report underscores the company’s commitment to transparency and accuracy in financial reporting, which is crucial for maintaining stakeholder trust and aligning with regulatory requirements.

Zhuzhou CRRC Times Electric Unveils Three-Year Dividend Distribution Plan
Apr 29, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced a new dividend distribution plan for the years 2025-2027, aiming to provide consistent and stable returns to shareholders while supporting the company’s long-term growth objectives. The plan outlines a flexible approach to profit distribution, prioritizing cash dividends and adjusting the proportion based on the company’s development stage and capital expenditure needs, ensuring a balance between shareholder returns and sustainable development.

Zhuzhou CRRC Times Electric Announces Board Committee Changes
Apr 29, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced changes in the composition of its board committees, effective from April 29, 2025. Ms. Feng Xiaoyun will join the Nomination Committee, leaving her position in the Remuneration Committee, while Mr. Zhong Ninghua will transition to the Remuneration Committee from the Nomination Committee. These changes reflect the company’s ongoing efforts to optimize its board structure, potentially impacting its governance and strategic decision-making processes.

Zhuzhou CRRC Times Electric Announces Board Composition and Committee Roles
Apr 29, 2025

Zhuzhou CRRC Times Electric Co., Ltd. announced the composition of its Board of Directors, highlighting the roles and functions of each member. The announcement provides detailed information on the membership of six Board committees, which include Strategy and ESG, Audit, Risk Control, Nomination, Remuneration, and Science and Technology Innovation committees. This update is significant for stakeholders as it outlines the governance structure and strategic oversight within the company, potentially impacting its operational and strategic direction.

Zhuzhou CRRC Times Electric Announces Board Meeting for Q1 Results
Mar 31, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced an upcoming board meeting scheduled for April 29, 2025, where the board will approve the publication of the company’s unaudited financial results for the first quarter of 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and market positioning.

Zhuzhou CRRC Times Electric Announces 2024 Annual Results
Mar 28, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced its audited results for the year ending December 31, 2024. The results comply with the Hong Kong Stock Exchange’s requirements and will be accessible online by April 30, 2025. This announcement reflects the company’s commitment to transparency and its strategic focus on maintaining a strong market position in the transportation and energy industries.

Zhuzhou CRRC Times Electric Announces Final Dividend for 2024
Mar 28, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced a final cash dividend of RMB 1 per share for the financial year ending December 31, 2024. This move reflects the company’s stable financial performance and commitment to rewarding its shareholders. The announcement includes details on withholding tax rates for different types of shareholders, indicating a 10% tax for non-resident enterprises and a 20% tax for domestic individual investors via the Stock Connect programs. The specifics regarding the dividend payment, such as the exchange rate, ex-dividend date, and payment date, are yet to be announced, which suggests ongoing administrative processes to finalize these details.

Zhuzhou CRRC Times Electric Unveils 2025 Value Enhancement Plan
Mar 28, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has released its Corporate Value and Return Enhancement Action Plan for 2024, highlighting significant achievements in operational quality, technological innovation, and shareholder returns. Looking forward to 2025, the company aims to further enhance business quality and investor returns, aligning with its strategic development goals.

Zhuzhou CRRC Times Electric Announces Key Leadership Changes
Mar 28, 2025

Zhuzhou CRRC Times Electric Co., Ltd. announced the resignation of Ms. Cheung Lai Ha as company secretary and the appointment of Ms. Long Furong and Ms. Leung Hoi Yan as joint company secretaries, effective March 28, 2025. Ms. Leung will also serve as the authorised representative and process agent. The company has received a waiver for Ms. Long, who lacks certain qualifications required by the listing rules, due to her extensive experience and familiarity with the company’s operations, which is expected to support effective corporate governance.

Zhuzhou CRRC Times Electric Reviews Connected Transactions for Q4 2024
Mar 28, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced a quarterly review of its continuing connected transactions with CRRC Group Co., Ltd. under a mutual supply framework agreement. This agreement, effective from January 2023 to December 2025, involves the supply of various products and services. The independent non-executive directors of the company have reviewed the transactions for the fourth quarter of 2024, confirming they were conducted in the ordinary course of business, on fair commercial terms, and within the annual cap amounts set for 2024. This review process is part of the company’s corporate governance measures to protect independent shareholders’ interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.