China Railway Signal & Communication Stock Fair Value – China Railway Signal & Communication Rolls Out First Medium Capacity Monorail System Vehicle in Chongqing.
March 3, 2023
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China Railway Signal & Communication Stock Fair Value – China Railway Signal & Communication ($SEHK:03969) (CRSC) has recently announced that the first medium capacity monorail system vehicle was unveiled at the monorail manufacturing plant in Chongqing. This serves as a major milestone for CRSC who have deepened their penetration in the signaling and communication industry across the country. The monorail system vehicle is equipped with the Chinese homegrown Beidou navigation system and advanced safety systems, enabling a smooth and secure ride operation and overall improved passenger experience. This project showcases CRSC’s expertise and capabilities in the medium capacity monorail transportation sector. It further strengthens the company’s position in the Chinese rail transportation market.
In addition, this launch comes at a crucial time when environmental regulations are being tightened, to ensure that green transportation alternatives are adopted. The monorail vehicle is expected to have a positive impact on the public transit network of Chongqing, with improved transport efficiency and cost-effectiveness. Moreover, the high-end intelligent control system integrated into this vehicle will ensure safe operation by preventing potential accidents. It is hoped that this breakthrough development will pave the way for more efficient and sustainable public transportation in China.
Price History
Despite the negative coverage that the company has accrued in recent times, investors were pleased – the stock opened at HK$2.8 and closed at HK$2.9, a 2.5% increase from the last closing price of HK$2.8. This is suggestive of the market’s confidence in the company’s ability to deliver and innovate, despite the negative publicity. It might be true that CRSC still has a long and difficult road ahead of them, but their newest achievement can serve as a reminder of their potential and growth potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for China Railway Signal & Communication. More…
| Total Revenues | Net Income | Net Margin |
| 38.88k | 3.46k | 9.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for China Railway Signal & Communication. More…
| Operations | Investing | Financing |
| 2.1k | -4.6k | -827.38 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for China Railway Signal & Communication. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 112.72k | 67.02k | 4.13 |
Key Ratios Snapshot
Some of the financial key ratios for China Railway Signal & Communication are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.1% | -3.1% | 12.1% |
| FCF Margin | ROE | ROA |
| 3.5% | 6.7% | 2.6% |
Analysis – China Railway Signal & Communication Stock Fair Value
After our analysis, we have determined that the fair value of a CHINA RAILWAY SIGNAL & COMMUNICATION share is around HK$2.5, which has been calculated through our proprietary Valuation Line. As it stands, CHINA RAILWAY SIGNAL & COMMUNICATION’s stock is currently traded at HK$2.9, which means that it is being fairly overvalued by 13.7%. More…
Peers
The company’s main competitors are Guangshen Railway Co Ltd, PT WEHA Transportasi Indonesia Tbk, and ComfortDelGro Corp Ltd.
– Guangshen Railway Co Ltd ($SHSE:601333)
Guangshen Railway Co Ltd is a Chinese railway company with a market cap of 13.23B as of 2022. The company has a Return on Equity of -5.11%. The company operates railways in Guangdong Province, China.
– PT WEHA Transportasi Indonesia Tbk ($IDX:WEHA)
Weha Transportasi Indonesia Tbk is a leading transportation company in Indonesia. The company has a market cap of 166.5 billion as of 2022 and a return on equity of 10.29%. Weha Transportasi Indonesia Tbk provides transportation services including passenger transportation, freight transportation, and logistics services. The company also operates bus terminals and ticketing offices.
– ComfortDelGro Corp Ltd ($SGX:C52)
ComfortDelGro Corp Ltd is a public transportation company that provides bus, taxi, and rail services. The company has a market cap of 2.93B as of 2022 and a Return on Equity of 5.96%. ComfortDelGro Corp Ltd is headquartered in Singapore and has operations in Singapore, China, Australia, the United Kingdom, and Ireland.
Summary
China Railway Signal & Communication (CRS) has recently rolled out the first medium capacity monorail system vehicle in Chongqing, China. Despite the potential benefits of the new system, media coverage so far has been largely negative. Moving forward, investors should consider potential risks relating to the system, such as operational costs, technological complexity, and potential delays in implementation.
Nevertheless, CRS’s track record of successful projects and a growing customer base presents an opportunity for investors to take advantage of this early stage of development. Furthermore, with a foothold in China’s growing railway infrastructure sector, CRS is well positioned to capitalize on the long-term growth of the Chinese economy.
