SEHK:3969

Stock Analysis Report

China Railway Signal & Communication

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.

Snowflake

Fundamentals

Good value with adequate balance sheet.


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


Market Performance


7 Day Return

-2.5%

3969

0.5%

HK Electronic

0.3%

HK Market


1 Year Return

-12.3%

3969

-4.4%

HK Electronic

-1.5%

HK Market

Return vs Industry: 3969 underperformed the Hong Kong Electronic industry which returned -4.4% over the past year.

Return vs Market: 3969 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

3969IndustryMarket
7 Day-2.5%0.5%0.3%
30 Day-5.8%-2.0%0.5%
90 Day-14.9%6.0%-4.4%
1 Year-8.8%-12.3%-1.1%-4.4%2.1%-1.5%
3 Year-21.4%-28.0%-2.0%-9.8%14.7%3.2%
5 Yearn/a56.1%35.8%21.5%1.2%

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$4.7) is trading below our estimate of fair value (HK$15.66)

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 (10.3x) compared to the Electronic industry average (8.9x).

PE vs Market: 3969 is good value based on its PE Ratio (10.3x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 3969 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 3969 is overvalued based on its PB Ratio (1.3x) compared to the HK Electronic industry average (1x).


Next Steps

Future Growth

How is China Railway Signal & Communication forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3969's forecast earnings growth (17.2% per year) is above the savings rate (2%).

Earnings vs Market: 3969's earnings (17.2% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 3969's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3969's revenue (13.9% per year) is forecast to grow faster than the Hong Kong market (10.4% per year).

High Growth Revenue: 3969's revenue (13.9% 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 (13%).


Next Steps

Past Performance

How has China Railway Signal & Communication performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3969's earnings have grown by 10.9% 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 (10.9% per year).

Earnings vs Industry: 3969 earnings growth over the past year (8.7%) exceeded the Electronic industry -10.9%.


Return on Equity

High ROE: 3969's Return on Equity (13.4%) is considered low.


Return on Assets

ROA vs Industry: 3969's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: 3969's Return on Capital Employed has declined over the past 3 years.


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¥69.0B) exceeds its short term liabilities (CN¥51.1B)

Long Term Liabilities: 3969's short term assets (69.0B) exceeds its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: 3969's debt to equity ratio (10.1%) is considered satisfactory

Reducing Debt: 3969's debt to equity ratio has increased from 3% to 10.1% over the past 5 years.

Debt Coverage: 3969's operating cash flow is negative, therefore debt is not well covered.

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 22.342580x debt).


Next Steps

Dividend

What is China Railway Signal & Communication's current dividend yield, its reliability and sustainability?

3.53%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3969's dividend (3.53%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 3969's dividend (3.53%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.4%), 3969's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3969's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

What is the CEO of China Railway Signal & Communication's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Gang Yin (56yo)

4.4yrs

Tenure

CN¥965,000

Compensation

Mr. Yin Gang has been the President at China Railway Signal & Communication Corporation Limited since May 22, 2015 and its Executive Director since May 21, 2015. Mr. Yin is mainly responsible for overseein ...


CEO Compensation Analysis

Compensation vs. Market: Gang's total compensation ($USD136.27K) is about average for companies of similar size in the Hong Kong market ($USD806.88K).

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


Management Age and Tenure

3.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 3969's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 3969's board of directors are considered experienced (4.4 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¥32,027,96904 Jun 19
BlackRock, Inc.
EntityCompany
Shares6,009,000
Max PriceCN¥5.33
BuyCN¥11,261,90105 Mar 19
BlackRock, Inc.
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Shares1,733,000
Max PriceCN¥6.50
SellCN¥2,008,74105 Mar 19
National Council for Social Security Fund
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Shares300,000
Max PriceCN¥6.70
BuyCN¥1,323,05025 Dec 18
BlackRock, Inc.
EntityCompany
Shares235,000
Max PriceCN¥5.63
SellCN¥27,692,26822 Dec 18
BlackRock, Inc.
EntityCompany
Shares4,801,015
Max PriceCN¥5.77
BuyCN¥24,148,52218 Dec 18
BlackRock, Inc.
EntityCompany
Shares4,274,000
Max PriceCN¥5.65

Ownership Breakdown


Management Team

  • Zhiliang Zhou (54yo)

    Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: CN¥1.01m
  • Weizhong Shi

    President of CRSC Ltd and Executive Director of CRSC Ltd

    • Tenure: 0yrs
    • Compensation: CN¥368.00k
  • Wing Shan Ng (42yo)

    Joint Company Secretary

    • Tenure: 4.6yrs
  • Gang Yin (56yo)

    President & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥965.00k
  • Shaofeng Hu (51yo)

    Chief Accountant & Joint Company Secretary

    • Tenure: 3.3yrs
  • Yongsheng Yang (50yo)

    Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥688.94k
  • Shikui Chen (44yo)

    Employee Representative Supervisor & Head of the Legal Compliance Department

    • Tenure: 1.2yrs

Board Members

  • Zhiliang Zhou (54yo)

    Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: CN¥1.01m
  • Jiajie Wang (68yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥113.00k
  • Weizhong Shi

    President of CRSC Ltd and Executive Director of CRSC Ltd

    • Tenure: 0yrs
    • Compensation: CN¥368.00k
  • Gang Yin (56yo)

    President & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥965.00k
  • Jin’en Chen (64yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥60.00k
  • Liyan Tian (45yo)

    Chairwoman of the Supervisory Committee

    • Tenure: 4.4yrs
  • Yongsheng Yang (50yo)

    Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥688.94k
  • Peter Chan (68yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
  • Guiqing Yao (64yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥25.00k
  • Shikui Chen (44yo)

    Employee Representative Supervisor & Head of the Legal Compliance Department

    • Tenure: 1.2yrs

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$86.909b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3969SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foregin ListedHKHKDAug 2015
RS3DB (Deutsche Boerse AG)YesForeign Shares-Foregin ListedDEEURAug 2015
3969SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foregin ListedHKHKDAug 2015
3969SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foregin ListedHKHKDAug 2015
CRYY.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foregin ListedUSUSDAug 2015
CRYC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADSUSUSDApr 2018
688009SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJul 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 co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:56
End of Day Share Price2019/10/21 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.