Hong Kong Stock Concept Tracking | CRRC Corporation's first quarter performance greatly increased, market attention on high-speed EMU bidding (with concept stocks)

CRRC Corporation released a profit announcement, expecting to achieve a net profit attributable to shareholders of the listed company of RMB 2.822 billion to RMB 3.226 billion in the first quarter of 2025, an increase of 180% to 220% year-on-year; net profit attributable to shareholders of the listed company excluding non-recurring gains and losses is expected to be RMB 2.605 billion to RMB 2.872 billion, an increase of 290% to 330% year-on-year. The growth in the company's performance during the reporting period was mainly due to the increase in product sales volume compared to the same period of the previous year. High-speed train sales volume: In 2024, China's cumulative railway passenger traffic reached 4.312 billion person-times, an increase of 11.9% year-on-year, setting a new historical record. Equipment updates: Promoting the renovation of railway equipment to boost consumer spending and drive investment. As electric power and new energy vehicles are gradually being promoted, old-fashioned diesel locomotives on railways will be gradually replaced. The market is paying attention to the first batch of high-speed train procurement tender results to be announced in the second quarter. Haitong research report pointed out that CRRC Corporation is a global leader in rail transportation equipment, with significant achievements in state-owned enterprise reform, emphasizing dividend distribution and market value management. The company originated from the merger of "South and North Cars" and is currently the largest in scale, most comprehensive in variety, and technologically advanced supplier of rail transportation equipment in the world. The company has established a strategic position of "One Core, Two Businesses, and High-end", with its main business covering railway equipment, urban rail and urban infrastructure design, ShenZhen New Industries Biomedical Engineering, and modern services, optimizing its business structure to support profitability. Since the merger in 2015, the company's revenue and profit scale has remained steady overall. The controlling shareholder of the company is the State-owned Assets Supervision and Administration Commission of the State Council, which has effectively adjusted its operating mechanism and industrial layout through three years of state-owned enterprise reform. The company attaches great importance to cash dividend distribution and market value management, with a steadily increasing dividend yield. Related Hong Kong-listed companies of CRRC: CRRC Corporation (01766), Zhuzhou CRRC Times Electric (03898), China Railway Signal & Communication Corporation (03969)