SEHK:3898

Stock Analysis Report

Zhuzhou CRRC Times Electric

Executive Summary

Zhuzhou CRRC Times Electric Co., Ltd., together with its subsidiaries, manufactures and sells train-borne electrical systems and electrical components primarily in Mainland China and internationally.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Zhuzhou CRRC Times Electric's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

3898

-2.2%

HK Electrical

0.3%

HK Market


1 Year Return

-25.8%

3898

-33.5%

HK Electrical

-1.5%

HK Market

Return vs Industry: 3898 exceeded the Hong Kong Electrical industry which returned -33.5% over the past year.

Return vs Market: 3898 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

3898IndustryMarket
7 Day0.3%-2.2%0.3%
30 Day-9.1%-5.2%0.5%
90 Day-16.9%-12.6%-4.4%
1 Year-24.9%-25.8%-32.6%-33.5%2.1%-1.5%
3 Year-15.7%-19.0%-48.6%-50.5%14.7%3.2%
5 Year-0.03%-5.8%-43.5%-46.7%21.5%1.2%

Price Volatility Vs. Market

How volatile is Zhuzhou CRRC Times Electric's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zhuzhou CRRC Times Electric undervalued compared to its fair value and its price relative to the market?

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3898 (HK$31.4) is trading below our estimate of fair value (HK$44.9)

Significantly Below Fair Value: 3898 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 3898 is poor value based on its PE Ratio (12.6x) compared to the Electrical industry average (8.8x).

PE vs Market: 3898 is poor value based on its PE Ratio (12.6x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 3898 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 3898 is overvalued based on its PB Ratio (1.6x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is Zhuzhou CRRC Times Electric forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3898's forecast earnings growth (10.3% per year) is above the savings rate (2%).

Earnings vs Market: 3898's earnings (10.3% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 3898's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3898's revenue (9.2% per year) is forecast to grow slower than the Hong Kong market (10.4% per year).

High Growth Revenue: 3898's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3898's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Zhuzhou CRRC Times Electric performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3898's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: 3898's earnings growth over the past year (8%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: 3898 earnings growth over the past year (8%) underperformed the Electrical industry 8%.


Return on Equity

High ROE: 3898's Return on Equity (13%) is considered low.


Return on Assets

ROA vs Industry: 3898 has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: 3898's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Zhuzhou CRRC Times Electric's financial position?


Financial Position Analysis

Short Term Liabilities: 3898's short term assets (CN¥25.0B) exceeds its short term liabilities (CN¥8.5B)

Long Term Liabilities: 3898's short term assets (25.0B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: 3898's debt to equity ratio (2.2%) is considered satisfactory

Reducing Debt: 3898's debt to equity ratio has increased from 0.9% to 2.2% over the past 5 years.

Debt Coverage: 3898's debt is well covered by operating cash flow (141.1%).

Interest Coverage: 3898 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3898 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3898's debt is covered by short term assets (assets are 55.840920x debt).


Next Steps

Dividend

What is Zhuzhou CRRC Times Electric's current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3898's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 3898's dividend (1.59%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 3898's dividends per share have been stable in the past 10 years.

Growing Dividend: 3898's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20%), 3898's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3898's dividends in 3 years are forecast to be well covered by earnings (20.4% payout ratio).


Next Steps

Management

What is the CEO of Zhuzhou CRRC Times Electric's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Ke'an Liu (48yo)

3.8yrs

Tenure

CN¥1,622,097

Compensation

Mr. Ke'an Liu has been General Manager of Zhuzhou Csr Times Electric Co., Ltd. at CSR Zhuzhou Institute Co., Ltd. since February 11, 2016. Mr. Liu serves as General Manager of Zhuzhou CRRC Times Electric  ...


CEO Compensation Analysis

Compensation vs. Market: Ke'an's total compensation ($USD229.25K) is about average for companies of similar size in the Hong Kong market ($USD496.07K).

Compensation vs Earnings: Ke'an's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 3898's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 3898's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥2,203,15718 Oct 19
Schroder Investment Management (Hong Kong) Limited
EntityCompany
Shares72,000
Max PriceCN¥30.60
SellCN¥16,939,64428 May 19
Schroder Investment Management (Hong Kong) Limited
EntityCompany
Shares416,000
Max PriceCN¥40.72
BuyCN¥6,623,68523 May 19
FIL Limited
EntityCompany
Shares161,900
Max PriceCN¥40.91
BuyCN¥11,336,14923 Apr 19
FIL Limited
EntityCompany
Shares272,100
Max PriceCN¥41.66
SellCN¥51,620,94515 Apr 19
Citigroup Inc.,Banking and Securities Investments
EntityCompany
Shares1,158,800
Max PriceCN¥44.55
BuyCN¥19,500,23221 Feb 19
Schroder Investment Management (Hong Kong) Limited
EntityCompany
Shares436,000
Max PriceCN¥44.73

Ownership Breakdown


Management Team

  • Donglin Li (52yo)

    Chairman of the Board

    • Tenure: 1.3yrs
  • Wu Yan (52yo)

    Vice GM

    • Tenure: 8.8yrs
    • Compensation: CN¥981.50k
  • Yongneng Tan (49yo)

    Chief Administrative Officer

    • Tenure: 1.8yrs
  • Jian Chen (47yo)

    Vice General Manager

    • Tenure: 7.3yrs
  • Ke'an Liu (48yo)

    GM & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥1.62m
  • Hua Zhang (43yo)

    CFO & Vice GM

    • Tenure: 6.4yrs
  • Shouyi Yang (56yo)

    Vice Chairman

    • Tenure: 1.3yrs
  • Jing Shang (42yo)

    Chief Engineer & Vice GM

    • Tenure: 3.8yrs
  • Yingjing Zang

    Head of Accounting Department

    • Tenure: 0yrs

Board Members

  • Ping-Wing Pao (72yo)

    Independent Non Executive Director

    • Tenure: 14.1yrs
    • Compensation: CN¥283.53k
  • Clement Chan (61yo)

    Independent Non Executive Director

    • Tenure: 14.1yrs
    • Compensation: CN¥283.53k
  • Chunru Liu (48yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: CN¥103.77k
  • Donglin Li (52yo)

    Chairman of the Board

    • Tenure: 1.3yrs
  • Wu Yan (52yo)

    Vice GM

    • Tenure: 8.8yrs
    • Compensation: CN¥981.50k
  • Ke'an Liu (48yo)

    GM & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥1.62m
  • Xinning Zhang (55yo)

    Non-Executive Director

    • Tenure: 2.2yrs
  • Shouyi Yang (56yo)

    Vice Chairman

    • Tenure: 1.3yrs
  • Xiaoming Chen (56yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥103.77k
  • Lüe Li (50yo)

    Chairman of Supervisory Committee

    • Tenure: 0.3yrs

Company Information

Zhuzhou CRRC Times Electric Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhuzhou CRRC Times Electric Co., Ltd.
  • Ticker: 3898
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: HK$36.910b
  • Shares outstanding: 1.18b
  • Website: https://www.tec.crrczic.cc

Number of Employees


Location

  • Zhuzhou CRRC Times Electric Co., Ltd.
  • Unit 1106
  • 11th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3898SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2006
ZTXDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2006
ZHUZ.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2006
3898SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2006
3898SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2006
ZHUZ.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 2012

Biography

Zhuzhou CRRC Times Electric Co., Ltd., together with its subsidiaries, manufactures and sells train-borne electrical systems and electrical components primarily in Mainland China and internationally. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:44
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.