CRRC (601766) Research Report: Good results of railway investment integration and efficiency improvement
Since the merger of CSR and CNR, the results of integration and improvement have appeared, and the medium- and long-term profitability is expected to stabilize and increase. Recently, we conducted a survey of CRRC’s Chengdu and Meishan subsidiaries.Production automation and intelligent upgrades, cost reductions, cost reductions, and revitalization of assets have made progress in improving quality and efficiency, and the company’s net interest rate is expected to rise steadily in the medium and long term.
We believe that the railway investment is increasing, the freight movements are being promoted, and the railway equipment industry needs to be stable under the Fuxing spectrum development. It is worth looking forward to a new round of equipment procurement in the second half of 2019. The market after the EMU or new growth is expected to be 19
The 21-year EPS is 0.
54 yuan, “Buy” rating.
Chengdu Company: Remodeling the competitive advantage according to local conditions. CRRC’s representative company for transformation and upgrading. Chengdu’s main business before the transformation was motor manufacturing and passenger car maintenance.
In 2014, CRRC plans to carry out the custody drive and upgrade. Chengdu Company will be entrusted to Sifang, a core subsidiary of CRRC, and Sifang shares take part in Chengdu Company 35.
48%), the motor business that caused insufficient competitiveness was restructured and reorganized within the group. At the same time, it acquired the new subway construction and advanced repair business of the EMU injected into the Quartet, and integrated the relocation, retreating from the city and entering the park, revitalizing the land and real estate.Profitability has improved significantly.
In the future, the company will develop inter-city EMU manufacturing, subway vehicle maintenance and other services, and become an important force for CRRC to grasp the rapid development of the high-speed rail, municipal railway, and metro rail equipment market in the southwest.
Meishan Company: Multi-dimensional innovation and effectiveness, steady improvement in operating efficiency and industry competitiveness. Meishan Company is a subsidiary of CRRC’s Changjiang Group. Its main business includes railway wagons, brake products (mainly air brakes for trucks), and fasteners., Logistics equipment, etc.
The company’s achievements in innovation, efficiency and management competitiveness in recent years include: 1) Lean production to improve efficiency, C70B, C70E, X70, NX70 and other single-shift production efficiencies of trucks have significantly improved; 2) Optimized personnel structure andReduce the number of personnel, improve the performance system, establish a “broadband budget + sales commission” distribution system for overseas operations, and establish a “post performance + project salary” distribution system for R & D teams, while improving the error correction mechanism; 3) Create cost advantages, from designSource, cost reduction of procurement source.
Railway investment in 2019 is booming, and a new round of equipment bidding in the second half of the year is worth looking forward. According to the General Railway Working Conference, the national railway investment in 2019 will continue to maintain its intensity and scale. From January to July 19, national railway investment has steadily increased, reaching386.8 billion yuan / year-on-year + 3%.
The “Three-year Action Plan to Win the Defence of the Blue Sky” targets: the national railway freight volume will be 36 in 2017.
900 million tons will rise to 47 in 2020.
9 billion tons, the national railway freight volume completed on January 7, 201924.
33 billion tons, an increase of 1 in ten years.
400 million tons, an increase of 6%, and incremental actions were implemented steadily.
Since 2019, China National Railway Group (formerly China Railway Group) has not issued a new round of tenders for high-speed EMUs. We believe that considering the steady advancement of high-speed rail construction and the objective needs of high-speed rail passenger transportation, the procurement of high-speed EMUs has generally remained stable.In the second half of the year, tenders for high-speed EMUs and other railway equipment are worth looking forward to.
We are optimistic about the world-class rail transit equipment leader in terms of technical strength and maintain the “Buy” rating. We expect the company to be 19?
In 21 years, the net profit attributable to mothers was RMB 13,54.8 billion, and the corresponding PE was 16.
Rail transit equipment industry’s 19-year average PE is 25 times. We maintain the company’s 19-year target PE 23?
25 times, maintaining target price of 10.
Risk reminder: Railway fixed assets investment is less than expected, railway freight incremental action is less than expected, domestic railway equipment procurement is less than expected, overseas business expansion 西安耍耍网 is less than expected