Zhuzhou CRRC Times Electric Co (3898) AI Stock Analysis

• Market Cap: HK$66.72B
• Dividend Yield: 4.07%
• Average Volume (3M): 3.04M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.93
• Revenue Growth: 14.48%
• EPS Growth: 12.74%
• Country: HK
• Employees: 10,010
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.85
• Shares Outstanding: 489,040,900
• 10 Day Avg. Volume: 3,669,973
• 30 Day Avg. Volume: 3,041,145
• PEG Ratio: 0.60
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 1.76
• P/FCF Ratio: -486.45
• 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: HK$49.17
• Price Target Upside: 26.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$44.00 ▲(13.64% Upside)

Zhuzhou CRRC Times Electric Co's strong financial performance and fair valuation are the primary drivers of its stock score. The technical analysis suggests potential for a reversal, but current trends are bearish. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Market Position

Strong partnerships with key industry players bolster market position, ensuring stable revenue streams and competitive advantage.

Balance Sheet Health

A strong balance sheet with minimal debt enhances financial stability and provides flexibility for strategic investments.

Profitability Margins

Strong profitability margins indicate efficient operations and pricing power, supporting sustainable long-term earnings.

Negative Factors

Revenue Growth

Slow revenue growth may limit future earnings expansion and market share gains, challenging long-term competitiveness.

Free Cash Flow Generation

Weak free cash flow generation can constrain investment capacity and shareholder returns, impacting long-term growth potential.

Return on Equity

Moderate ROE suggests potential inefficiencies in generating shareholder value, necessitating strategic improvements.

Zhuzhou CRRC Times Electric Co Business Overview & Revenue Model

Company Description

Zhuzhou CRRC Times Electric Co., Ltd. is a leading Chinese company specializing in the manufacturing of electric propulsion systems and equipment for rail transit, as well as power supply systems for other sectors. As a subsidiary of CRRC Corporation Limited, it operates primarily within the rail transportation sector, focusing on the development of high-tech electrical products such as traction systems, control systems, and various electrical components used in locomotives, urban transit systems, and other forms of transportation. The company is renowned for its innovation and commitment to advancing green technology in rail transport.

How the Company Makes Money

Zhuzhou CRRC Times Electric generates revenue primarily through the sale of its electrical equipment and systems to railway operators and manufacturers. Key revenue streams include contracts for the supply of traction and control systems for high-speed trains, urban rail systems, and freight locomotives. The company also earns income from maintenance services and upgrades for existing systems. Significant partnerships with state-owned enterprises and international rail companies enhance its market reach and contribute to stable revenue growth. Additionally, government initiatives promoting the development of public transport infrastructure further support the company’s sales.

Zhuzhou CRRC Times Electric Co Financial Statement Overview

Summary

Zhuzhou CRRC Times Electric Co exhibits strong financial performance with high profitability margins and a solid balance sheet. The company shows minimal leverage risk and stable cash flows, though there is room for improvement in ROE and free cash flow generation. Revenue growth is modest, but overall financial health is robust.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.84B	24.75B	21.80B	18.03B	15.12B	16.03B
Gross Profit	9.16B	6.71B	7.33B	5.97B	5.00B	5.89B
EBITDA	5.11B	5.58B	4.34B	3.77B	2.40B	3.00B
Net Income	3.87B	3.70B	3.11B	2.56B	2.02B	2.48B
Balance Sheet
Total Assets	69.18B	64.80B	53.40B	48.51B	44.15B	33.87B
Cash, Cash Equivalents and Short-Term Investments	10.86B	17.84B	13.83B	14.59B	15.85B	8.86B
Total Debt	7.07B	6.21B	5.34B	3.34B	2.23B	2.30B
Total Liabilities	25.17B	20.04B	15.69B	13.21B	10.86B	9.61B
Stockholders Equity	40.65B	41.53B	37.00B	34.53B	32.62B	23.85B
Cash Flow
Free Cash Flow	1.20B	-89.41M	-198.63M	1.09B	1.18B	-107.81M
Operating Cash Flow	4.57B	3.36B	2.78B	2.04B	2.15B	1.75B
Investing Cash Flow	-5.25B	-3.20B	-2.28B	-2.26B	-6.01B	-629.72M
Financing Cash Flow	-2.91B	456.25M	-589.06M	-591.38M	6.97B	-545.24M

Zhuzhou CRRC Times Electric Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.72
• 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:3898, the sentiment is Positive. The current price of 38.72 is above the 20-day moving average (MA) of 38.29, below the 50-day MA of 41.02, and above the 200-day MA of 34.91, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 34.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3898.

Zhuzhou CRRC Times Electric Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0066	76 Outperform	HK$191.91B	11.00	9.59%	4.24%	-0.99%	80.58%
3898	72 Outperform	HK$66.72B	12.61	9.42%	4.07%	14.48%	12.74%
1786	69 Neutral	HK$1.41B	9.80	2.21%	3.33%	-3.37%	-17.55%
3969	64 Neutral	HK$58.64B	10.17	7.39%	5.24%	0.19%	4.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0525	63 Neutral	HK$21.92B	15.58	4.61%	3.54%	―	―
2169	51 Neutral	HK$2.84B	42.01	7.66%	0.93%	-14.80%	11.92%

Zhuzhou CRRC Times Electric Co Corporate Events

Zhuzhou CRRC Times Electric Announces 2025 Extraordinary General Meeting

Zhuzhou CRRC Times Electric Co., Ltd. has announced its first extraordinary general meeting for 2025, scheduled to take place on December 15 in Zhuzhou, China. The primary agenda is to consider and approve the 2026-2028 CRRC Group Mutual Supply Agreement and the estimated amount of ordinary connected transactions. This meeting is significant for stakeholders as it will determine the future business engagements between Zhuzhou CRRC Times Electric and CRRC Group, potentially impacting the company’s operational strategies and market positioning.

Zhuzhou CRRC Times Electric Delays Circular Dispatch for CRRC Transactions

Zhuzhou CRRC Times Electric Co., Ltd. announced a delay in the dispatch of a circular related to its continuing connected transactions with CRRC Group. The circular, which includes details of the 2026-2028 CRRC Group Mutual Supply Agreement and recommendations from the Independent Board Committee, was initially expected by 20 November 2025 but has been postponed to on or before 1 December 2025 due to additional time needed for preparation. This delay may impact the company’s stakeholders as it involves significant agreements that affect future operations and collaborations with CRRC Group.

Zhuzhou CRRC Times Electric Releases Q3 2025 Financial Results

Zhuzhou CRRC Times Electric Co., Ltd. announced its unaudited financial results for the third quarter of 2025, prepared under Chinese Accounting Standards. The report confirms the accuracy and completeness of the financial information, with the Board and senior management assuming responsibility for its truthfulness. The announcement highlights the company’s commitment to transparency and adherence to regulatory standards, which may positively influence stakeholder confidence.

Zhuzhou CRRC Times Electric Co Enters New Mutual Supply Agreement with CRRC Group

Zhuzhou CRRC Times Electric Co has entered into a new three-year mutual supply agreement with CRRC Group, effective from January 1, 2026, to December 31, 2028. This agreement, which involves the exchange of products, equipment, and services, is subject to independent shareholder approval and aims to continue the collaboration between the two entities, potentially impacting their operational synergy and market positioning.

Zhuzhou CRRC Times Electric Schedules Board Meeting for Financial Results

Zhuzhou CRRC Times Electric Co., Ltd. has announced a board meeting scheduled for October 30, 2025, to approve the publication of its unaudited financial results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and potentially impact its market positioning and stakeholder confidence.