CICC International: Lowered target price of CRRC Corporation (01766) to HK$5.8, rating "Outperform"

Bank of China International released a research report stating that CRRC Corporation (01766) maintains a positive outlook on railway equipment and prospects for new energy this year. With the growth of high-speed rail passenger volume, the increase in maintenance demand for multi-purpose fleets, and the advancement of locomotive upgrade plans, the company is expected to achieve growth this year. Bank of China International quoted CRRC Corporation management as saying that it is expected that net profit for the first quarter of the 2025 fiscal year will increase by 180% to 220% year-on-year, and pointed out that CRRC Corporation's business mainly relies on domestic demand with low tariff risk. The bank has lowered the target price of CRRC Corporation from 6.1 Hong Kong dollars to 5.8 Hong Kong dollars, equivalent to a forecasted P/E ratio of 11 times next year, and maintains an "outperform market" rating.