Zhuzhou CRRC Times Electric Co (3898) AI Stock Analysis

• Market Cap: HK$76.68B
• Dividend Yield: 4.07%
• Average Volume (3M): 3.04M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.91
• Revenue Growth: 14.48%
• EPS Growth: 12.74%
• Country: HK
• Employees: 10,010
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.87
• 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$55.00
• Price Target Upside: 27.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: HK$48.00 ▲(11.68% 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

Profitability / Margins

Sustained gross and net margins near these levels indicate the company captures meaningful value from high-content electrical systems. Margin strength supports reinvestment in R&D and service capabilities, and reflects durable pricing power tied to safety‑critical rail components.

Balance Sheet Strength

Very low financial leverage and a strong equity base provide resilience through rail capex cycles and flexibility to fund capex, R&D, or aftermarket expansion without stressing liquidity. This enhances long-term financial stability and preserves investment optionality.

Aftermarket and Services Revenue

A meaningful aftermarket and services stream tied to long asset lives creates sticky, recurring revenue that smooths project volatility. Lifecycle services increase lifetime customer value, support margins through spare parts and upgrades, and underpin steady cash generation over years.

Negative Factors

Free Cash Flow Decline

Material decline in free cash flow and weak conversion of earnings into FCF reduce the firm's ability to self‑fund investments, dividends or cyclical shortfalls. If sustained, this constrains financial flexibility and may force external financing or scaled back reinvestment.

Operating Margin Pressure

Erosion in EBIT/EBITDA margins signals emerging cost or mix pressures that can compress operating profitability over time. Unless cost control or higher‑value mix offsets this, sustained margin decline would reduce funds available for R&D, service capability builds and shareholder returns.

Revenue Cyclicality and Customer Concentration

Heavy dependence on rail procurement cycles and large OEM programs makes revenue lumpy and sensitive to order timing. Customer or program concentration raises execution and booking risk, complicating multi‑period planning and potentially amplifying top‑line volatility across quarters.

Zhuzhou CRRC Times Electric Co Business Overview & Revenue Model

Company Description

Zhuzhou 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 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 is performing well with strong revenue growth and healthy profit margins. The balance sheet is solid with low leverage and a strong equity position. However, the decline in free cash flow is a concern, indicating potential issues in cash management or increased capital expenditures. Overall, the company is financially stable but should focus on improving cash flow generation.

Income Statement

Zhuzhou CRRC Times Electric Co has demonstrated strong revenue growth over the years, with a TTM revenue growth rate of 4.68%. The company maintains healthy profit margins, with a gross profit margin of 34.13% and a net profit margin of 14.41% in the TTM period. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, indicating potential cost pressures.

Balance Sheet

The company has a solid balance sheet with a low debt-to-equity ratio of 0.17, indicating prudent financial leverage. The return on equity is stable at 9.43%, reflecting efficient use of equity capital. The equity ratio stands at 59.08%, showcasing a strong equity base relative to total assets.

Cash Flow

Operating cash flow is robust, with a TTM operating cash flow to net income ratio of 1.25, indicating good cash generation relative to earnings. However, free cash flow has declined significantly, with a negative growth rate of -21.97%, and the free cash flow to net income ratio is relatively low at 0.26, suggesting challenges in converting earnings to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.48B	24.75B	21.80B	18.03B	15.12B	16.03B
Gross Profit	9.37B	6.71B	7.33B	5.97B	5.00B	5.89B
EBITDA	4.60B	5.58B	4.34B	3.77B	2.40B	3.00B
Net Income	3.92B	3.70B	3.11B	2.56B	2.02B	2.48B
Balance Sheet
Total Assets	69.55B	64.80B	53.40B	48.51B	44.15B	33.87B
Cash, Cash Equivalents and Short-Term Investments	6.08B	17.84B	13.83B	14.59B	15.85B	8.86B
Total Debt	8.18B	6.21B	5.34B	3.34B	2.23B	2.30B
Total Liabilities	25.00B	20.04B	15.69B	13.21B	10.86B	9.61B
Stockholders Equity	41.11B	41.53B	37.00B	34.53B	32.62B	23.85B
Cash Flow
Free Cash Flow	1.05B	-89.41M	-198.63M	1.09B	1.18B	-107.81M
Operating Cash Flow	4.99B	3.36B	2.78B	2.04B	2.15B	1.75B
Investing Cash Flow	-4.36B	-3.20B	-2.28B	-2.26B	-6.01B	-629.72M
Financing Cash Flow	-2.43B	456.25M	-589.06M	-591.38M	6.97B	-545.24M

Zhuzhou CRRC Times Electric Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.98
• 50DMA: Positive
• 100DMA: Positive
• 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 42.98 is above the 20-day moving average (MA) of 40.11, above the 50-day MA of 38.93, and above the 200-day MA of 36.23, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 67.76 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$215.05B	12.42	9.59%	4.35%	-0.99%	80.58%
3898	76 Outperform	HK$76.68B	13.99	9.42%	4.07%	14.48%	12.74%
1786	68 Neutral	HK$1.38B	9.48	2.21%	3.48%	-3.37%	-17.55%
3969	65 Neutral	HK$60.50B	10.71	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$23.03B	16.16	4.61%	3.48%	―	―
2169	51 Neutral	HK$2.72B	40.24	7.66%	0.87%	-14.80%	11.92%

Zhuzhou CRRC Times Electric Co Corporate Events

Zhuzhou CRRC Times Electric Sets March 2026 Board Meeting for 2025 Results and Dividend Plan

Zhuzhou CRRC Times Electric Co., Ltd. has scheduled a board meeting for 27 March 2026 to review and approve the audited final results of the group for the financial year ended 31 December 2025, and to consider a proposal for a final dividend. The meeting will also address any other business matters, with the announcement underscoring the company’s regular corporate governance cycle and signaling an upcoming disclosure of financial performance and potential shareholder returns.

The most recent analyst rating on (HK:3898) stock is a Buy with a HK$42.00 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 Approves Key Supply Agreement at EGM

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

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

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

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

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

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

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

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

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.