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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:3898

Zhuzhou CRRC Times Electric Co

(3898)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
HK$43.00
▲(15.10% Upside)
Zhuzhou CRRC Times Electric Co's stock score is primarily driven by its strong financial performance and attractive valuation. The company demonstrates solid revenue growth and maintains healthy profit margins, although cash flow generation needs improvement. The stock's valuation is favorable with a low P/E ratio and a good dividend yield. However, technical indicators suggest a bearish trend, which slightly offsets the positive financial and valuation aspects.
Positive Factors
Revenue Growth
The company shows consistent revenue growth, indicating strong demand for its products and services, which supports long-term business stability and expansion.
Market Position
Strategic partnerships strengthen market position and provide stable revenue streams, enhancing competitive advantage in the rail transportation sector.
Balance Sheet Health
A strong balance sheet with low leverage ensures financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.
Negative Factors
Free Cash Flow Decline
Declining free cash flow indicates challenges in converting earnings to cash, potentially limiting the company's ability to fund operations and investments without external financing.
EBIT and EBITDA Margin Decline
Decreasing margins suggest rising costs or pricing pressures, which could impact profitability if not addressed, affecting long-term financial performance.
Cash Management Concerns
Challenges in cash management may hinder the company's ability to efficiently allocate resources, impacting operational efficiency and strategic investments.

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., together with its subsidiaries, engages in the research, development, design, manufacture, and sale of railway transportation equipment products, and provision of relevant services primarily in Mainland China and internationally. The company's products include traction converter systems of rail transit vehicles, railway engineering machinery, and communication signal systems. It also produces propulsion and control systems for trains and electric vehicles, signaling systems, power supply solutions, platform screen doors, rail maintenance vehicles, marine engineering equipment, and component products for various applications. The company's products for rolling stock and railways include EMU, locomotive, and mass transit systems; and components products consist of semiconductors, resistors, reactors, radiators, sensors, power capacitors, and heatsinks. Its energy and industrial products comprise marine engineering, electric vehicle, and inverter and converter systems, as well as provides railway maintenance and construction machines. The company was formerly known as Zhuzhou CSR Times Electric Co., Ltd. and changed its name to Zhuzhou CRRC Times Electric Co., Ltd. in March 2016. The company was incorporated in 2005 and is based in Wanchai, Hong Kong. Zhuzhou CRRC Times Electric Co., Ltd. is a subsidiary of CRRC Zhuzhou Institute Co., Ltd.
How the Company Makes MoneyZhuzhou 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue28.10B24.75B21.80B18.03B15.12B16.03B
Gross Profit9.57B6.71B7.33B5.97B5.00B5.89B
EBITDA4.71B5.58B4.34B3.77B2.40B3.00B
Net Income4.02B3.70B3.11B2.56B2.02B2.48B
Balance Sheet
Total Assets76.02B64.80B53.40B48.51B44.15B33.87B
Cash, Cash Equivalents and Short-Term Investments6.64B17.84B13.83B14.59B15.85B8.86B
Total Debt8.94B6.21B5.34B3.34B2.23B2.30B
Total Liabilities27.32B20.04B15.69B13.21B10.86B9.61B
Stockholders Equity44.93B41.53B37.00B34.53B32.62B23.85B
Cash Flow
Free Cash Flow940.16M-89.41M-198.63M1.09B1.18B-107.81M
Operating Cash Flow5.02B3.36B2.78B2.04B2.15B1.75B
Investing Cash Flow-4.40B-3.20B-2.28B-2.26B-6.01B-629.72M
Financing Cash Flow-2.56B456.25M-589.06M-591.38M6.97B-545.24M

Zhuzhou CRRC Times Electric Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price37.36
Price Trends
50DMA
39.20
Negative
100DMA
39.68
Negative
200DMA
35.38
Positive
Market Momentum
MACD
-0.36
Negative
RSI
42.71
Neutral
STOCH
26.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3898, the sentiment is Negative. The current price of 37.36 is below the 20-day moving average (MA) of 38.03, below the 50-day MA of 39.20, and above the 200-day MA of 35.38, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 26.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3898.

Zhuzhou CRRC Times Electric Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$186.69B10.709.59%4.35%-0.99%80.58%
76
Outperform
HK$69.19B12.429.42%4.07%14.48%12.74%
68
Neutral
HK$1.37B9.482.21%3.48%-3.37%-17.55%
65
Neutral
HK$60.34B9.857.39%5.51%0.19%4.36%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
HK$22.46B15.954.61%3.48%
51
Neutral
HK$2.92B43.207.66%0.87%-14.80%11.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3898
Zhuzhou CRRC Times Electric Co
37.36
8.63
30.02%
HK:1786
CRCC High-Tech Equipment
0.89
0.18
25.35%
HK:3969
China Railway Signal & Communication
3.41
0.38
12.65%
HK:0525
Guangshen Railway Company
2.20
0.18
8.64%
HK:0066
MTR
29.96
5.90
24.50%
HK:2169
Canggang Railway Limited
0.74
-0.56
-43.08%

Zhuzhou CRRC Times Electric Co Corporate Events

Zhuzhou CRRC Times Electric Approves Key Supply Agreement at EGM
Dec 15, 2025

Zhuzhou CRRC Times Electric Co., Ltd. held its first extraordinary general meeting of 2025 on December 15, where shareholders approved the 2026-2028 CRRC Group Mutual Supply Agreement. This agreement is significant for the company’s operations, as it outlines the terms for ordinary connected transactions with the CRRC Group, potentially impacting the company’s market positioning and stakeholder relationships.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$44.00 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 Appoints New Employee Director
Dec 15, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced the appointment of Ms. Chen Zhiman as an employee director, effective from December 15, 2025. She will also join the Strategy and ESG Committee and the Science and Technology Innovation Committee of the Board. This appointment is expected to enhance the company’s strategic and technological initiatives, potentially impacting its market position and stakeholder engagement positively.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$44.00 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 Announces Board Composition
Dec 15, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced the composition of its Board of Directors, highlighting the roles and functions of each member. This announcement is crucial as it outlines the leadership structure and committee memberships, which are vital for the company’s strategic direction and governance, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$44.00 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 Enters New Mutual Supply Agreement with Qingdao Company
Dec 15, 2025

Zhuzhou CRRC Times Electric Co has entered into a new agreement with Qingdao Company for the period 2026-2028, following the expiration of their previous agreement. This new mutual supply agreement involves the exchange of products and services, including electrical systems and components, between the two companies. The transactions are classified as continuing connected transactions under the Hong Kong Stock Exchange’s Listing Rules, subject to specific reporting and review requirements. This agreement is expected to maintain the company’s operational synergy with Qingdao Company, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$44.00 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 Conducts Quarterly Review of Connected Transactions
Dec 15, 2025

Zhuzhou CRRC Times Electric Co., Ltd. announced a quarterly review of its continuing connected transactions with CRRC Group Co., Ltd. The review, conducted by independent non-executive directors, confirmed that the transactions were fair, reasonable, and within the agreed terms and annual cap amounts for 2025. This ongoing review process aims to protect the interests of independent shareholders by ensuring transparency and adherence to corporate governance measures.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$44.00 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. Appoints New Employee Director
Dec 9, 2025

Zhuzhou CRRC Times Electric Co., Ltd. has announced the appointment of Ms. Chen Zhiman as the Employee Director of its seventh Board session. Ms. Chen, a seasoned engineer with extensive experience in the company’s Engineering Technology Department, will serve in this role without additional remuneration, reflecting the company’s commitment to leveraging internal expertise for strategic governance.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$44.00 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. Announces Board Composition
Dec 9, 2025

Zhuzhou CRRC Times Electric Co., Ltd. announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement underscores the company’s commitment to robust governance and strategic oversight, which could enhance its operational efficiency and strengthen its position in the rail transportation industry.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$44.00 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 Announces 2025 Extraordinary General Meeting
Nov 25, 2025

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.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$44.00 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 Delays Circular Dispatch for CRRC Transactions
Nov 20, 2025

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.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$44.00 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 Releases Q3 2025 Financial Results
Oct 30, 2025

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.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$50.00 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 Enters New Mutual Supply Agreement with CRRC Group
Oct 30, 2025

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.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on Zhuzhou CRRC Times Electric Co stock, see the HK:3898 Stock Forecast page.

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.Date of analysis: Dec 19, 2025