Executive Summary
China Railway Signal & Communication Corporation Limited, together with its subsidiaries, provides rail transportation control system solutions in the People's Republic of China and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and good value.
Similar Companies
Share Price & News
How has China Railway Signal & Communication's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 3969 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.1%
3969
-1.5%
HK Electronic
0.2%
HK Market
1 Year Return
-39.6%
3969
-22.4%
HK Electronic
-22.0%
HK Market
Return vs Industry: 3969 underperformed the Hong Kong Electronic industry which returned -22.4% over the past year.
Return vs Market: 3969 underperformed the Hong Kong Market which returned -22% over the past year.
Shareholder returns
| 3969 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.1% | -1.5% | 0.2% |
| 30 Day | -7.8% | -17.5% | -12.4% |
| 90 Day | -18.7% | -25.3% | -16.4% |
| 1 Year | -37.2%-39.6% | -20.1%-22.4% | -19.1%-22.0% |
| 3 Year | -37.1%-42.4% | -22.8%-29.2% | -3.7%-13.4% |
| 5 Year | n/a | 15.2%0.1% | -15.2%-28.8% |
Price Volatility Vs. Market
How volatile is China Railway Signal & Communication's share price compared to the market and industry in the last 5 years?
Simply Wall St News
Valuation
Is China Railway Signal & Communication undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 3969 (HK$3.69) is trading below our estimate of fair value (HK$10.81)
Significantly Below Fair Value: 3969 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 3969 is poor value based on its PE Ratio (8.9x) compared to the Electronic industry average (8.1x).
PE vs Market: 3969 is good value based on its PE Ratio (8.9x) compared to the Hong Kong market (9.1x).
Price to Earnings Growth Ratio
PEG Ratio: 3969 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: 3969 is overvalued based on its PB Ratio (0.9x) compared to the HK Electronic industry average (0.8x).
Next Steps
Future Growth
How is China Railway Signal & Communication forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
12.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3969's forecast earnings growth (12.8% per year) is above the savings rate (1.6%).
Earnings vs Market: 3969's earnings (12.8% per year) are forecast to grow faster than the Hong Kong market (11.6% per year).
High Growth Earnings: 3969's earnings are forecast to grow, but not significantly.
Revenue vs Market: 3969's revenue (9.5% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).
High Growth Revenue: 3969's revenue (9.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 3969's Return on Equity is forecast to be low in 3 years time (11.2%).
Next Steps
Past Performance
How has China Railway Signal & Communication performed over the past 5 years?
10.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3969 has high quality earnings.
Growing Profit Margin: 3969's current net profit margins (8.7%) are higher than last year (8.3%).
Past Earnings Growth Analysis
Earnings Trend: 3969's earnings have grown by 10% per year over the past 5 years.
Accelerating Growth: 3969's earnings growth over the past year (8.7%) is below its 5-year average (10% per year).
Earnings vs Industry: 3969 earnings growth over the past year (8.7%) exceeded the Electronic industry -10.7%.
Return on Equity
High ROE: 3969's Return on Equity (9.8%) is considered low.
Next Steps
Financial Health
How is China Railway Signal & Communication's financial position?
Financial Position Analysis
Short Term Liabilities: 3969's short term assets (CN¥80.5B) exceed its short term liabilities (CN¥51.8B).
Long Term Liabilities: 3969's short term assets (CN¥80.5B) exceed its long term liabilities (CN¥3.0B).
Debt to Equity History and Analysis
Debt Level: 3969's debt to equity ratio (5.5%) is considered satisfactory.
Reducing Debt: 3969's debt to equity ratio has increased from 2.5% to 5.5% over the past 5 years.
Debt Coverage: 3969's debt is well covered by operating cash flow (144.5%).
Interest Coverage: 3969 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 3969 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 3969's debt is covered by short term assets (assets are 34.5x debt).
Next Steps
Dividend
What is China Railway Signal & Communication's current dividend yield, its reliability and sustainability?
5.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 3969's dividend (5.93%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.6%).
High Dividend: 3969's dividend (5.93%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.27%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 3969 has been paying a dividend for less than 10 years.
Growing Dividend: 3969's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (52.6%), 3969's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 3969's dividends in 3 years are forecast to be covered by earnings (51.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.7yrs
Average management tenure
CEO
Zongxiang Xu (56yo)
0.33
Tenure
Mr. Zongxiang Xu has served as Executive Director at at China Railway Signal & Communication Corporation Limited since February 12, 2020 and has been its President since December 4, 2019. Mr. Xu has been t ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 8.25yrs | CN¥1.01m | no data | |
| Executive Director | 1.67yrs | CN¥688.94k | no data | |
| President & Executive Director | 0.33yr | no data | no data | |
| Chief Financial Officer & Chief Accountant | no data | no data | no data | |
| Employee Representative Supervisor & Head of the Legal Compliance Department | 1.67yrs | no data | no data | |
| Chairman of the Supervisory Committee | 0.083yr | no data | no data | |
| Head of Accounting Department | no data | no data | no data | |
| VP & Chief Engineer | 1.25yrs | no data | no data | |
| Joint Company Secretary | 5.08yrs | no data | no data | |
| Board Secretary & Joint Company Secretary | 0.50yr | no data | no data |
1.7yrs
Average Tenure
50yo
Average Age
Experienced Management: 3969's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 8.25yrs | CN¥1.01m | no data | |
| Executive Director | 1.67yrs | CN¥688.94k | no data | |
| President & Executive Director | 0.33yr | no data | no data | |
| Employee Representative Supervisor & Head of the Legal Compliance Department | 1.67yrs | no data | no data | |
| Chairman of the Supervisory Committee | 0.083yr | no data | no data | |
| Independent Non-Executive Director | 4.92yrs | CN¥113.00k | no data | |
| Independent Non-Executive Director | 1.67yrs | no data | no data | |
| Independent Non-Executive Director | 4.92yrs | CN¥60.00k | no data | |
| Independent Non-Executive Director | 1.67yrs | CN¥25.00k | no data | |
| Shareholder Representative Supervisor | 0.17yr | no data | no data |
1.7yrs
Average Tenure
55.5yo
Average Age
Experienced Board: 3969's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.
Top Shareholders
Company Information
China Railway Signal & Communication Corporation Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Railway Signal & Communication Corporation Limited
- Ticker: 3969
- Exchange: SEHK
- Founded: 1953
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: HK$66.556b
- Shares outstanding: 10.59b
- Website: https://www.crsc.cn
Number of Employees
Location
- China Railway Signal & Communication Corporation Limited
- CRSC Building
- 1 Compound, Automobile Museum South Road
- Beijing
- 100070
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 3969 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foregin Listed | HK | HKD | Aug 2015 |
| RS3 | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foregin Listed | DE | EUR | Aug 2015 |
| 3969 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foregin Listed | HK | HKD | Aug 2015 |
| 3969 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foregin Listed | HK | HKD | Aug 2015 |
| CRYY.F | OTCPK (Pink Sheets LLC) | Yes | Foreign Shares-Foregin Listed | US | USD | Aug 2015 |
| CRYC.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADS | US | USD | Apr 2018 | |
| 688009 | SHSE (Shanghai Stock Exchange) | Domestic Shares | CN | CNY | Jul 2019 | |
| 688009 | XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect) | Domestic Shares | CN | CNY | Jul 2019 |
Biography
China Railway Signal & Communication Corporation Limited, together with its subsidiaries, provides rail transportation control system solutions in the People's Republic of China and internationally. The company operates through Rail Transportation Control System, Construction Contracting, and Others segments. It offers engineering design, consultancy, and system integration services for rail transportation control system projects, and integrated solutions designed to achieve functionality and performance of control system. It also manufactures and sells signal system products; communication information system products; cables, and electrical appliances and equipment; and signal automatic, electronic, and electrical equipment for railways and urban transit, as well as electric power basic equipment and devices. In addition, the company provides construction, installation, testing, and maintenance services for rail transportation control system projects; urban rail transit technical development, consultation, and related service; project investment, management, and consultation services; and construction and installation contracting services, as well as technical detection services. Further, it is involved in the provision of municipal engineering and related construction services; and import and export of goods, as well as offers survey, design, and consultation services. Additionally, the company trades in equipment in communication, signal, electric power and automatic control, minerals, coal, coke, and other materials; and designs, manufactures, sells, and trades in tramcars, light rail vehicles, and pipe fittings, as well as provides industrial and civil construction contracting services. China Railway Signal & Communication Corporation Limited was founded in 1953 and is headquartered in Beijing, China. China Railway Signal & Communication Corporation Limited is a subsidiary of China Railway Signal & Communication (Group) Corporation Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/05 13:05 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.