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 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

3969IndustryMarket
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 Yearn/a15.2%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

NamePositionTenureCompensationOwnership
Zhiliang Zhou
Chairman8.25yrsCN¥1.01mno data
Yongsheng Yang
Executive Director1.67yrsCN¥688.94kno data
Zongxiang Xu
President & Executive Director0.33yrno datano data
Shaofeng Hu
Chief Financial Officer & Chief Accountantno datano datano data
Shikui Chen
Employee Representative Supervisor & Head of the Legal Compliance Department1.67yrsno datano data
Ning Kong
Chairman of the Supervisory Committee0.083yrno datano data
Shihua Zhang
Head of Accounting Departmentno datano datano data
Zhihui Zhang
VP & Chief Engineer1.25yrsno datano data
Wing Shan Ng
Joint Company Secretary5.08yrsno datano data
Wei Qiu
Board Secretary & Joint Company Secretary0.50yrno datano 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

NamePositionTenureCompensationOwnership
Zhiliang Zhou
Chairman8.25yrsCN¥1.01mno data
Yongsheng Yang
Executive Director1.67yrsCN¥688.94kno data
Zongxiang Xu
President & Executive Director0.33yrno datano data
Shikui Chen
Employee Representative Supervisor & Head of the Legal Compliance Department1.67yrsno datano data
Ning Kong
Chairman of the Supervisory Committee0.083yrno datano data
Jiajie Wang
Independent Non-Executive Director4.92yrsCN¥113.00kno data
Ka Keung Chan
Independent Non-Executive Director1.67yrsno datano data
Jin'en Chen
Independent Non-Executive Director4.92yrsCN¥60.00kno data
Guiqing Yao
Independent Non-Executive Director1.67yrsCN¥25.00kno data
Tienan Li
Shareholder Representative Supervisor0.17yrno datano 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

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
688009XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 13:05
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.