Since the resumption of trading last Tuesday, the share price of China South Locomotive Co., Ltd. listed in Shanghai has risen by 58%. In the same period, CNR's share price also soared by 57%. H shares of two companies listed in Hong Kong rose even more, with a cumulative increase of more than 70% in the past week, mainly because mainland investors sought after these two stocks through the Shanghai-Hong Kong Stock Connect mechanism. China South Locomotive is the largest electric locomotive manufacturer in the world.
China's plan to export high-speed railway technology to other parts of the world has deeply attracted investors, especially through the grand strategy of "One Belt, One Road". The Belt and Road Initiative aims to connect China with Central Asia and Europe. The merged company will be named CRCC Company, which will enable China to compete with Japanese and European competitors more effectively. Although the share prices of these two companies have risen sharply, there may be more attractive ways for investors to seize the growth opportunities of China railway industry.
Zhuzhou CSR Times Electric Co., Ltd., 3898. HK, a subsidiary of China South Locomotive, is engaged in the design and manufacture of high-speed train power system. Some subsidiaries of CNR have listed CSR Times Electric as suppliers, from which we can see the quality of their products. Once the merger of CNR and CNR is completed, CSR Times Electric will have the right to acquire subsidiaries of CNR engaged in the same business. Luo Kaiwen, an analyst at Morgan Stanley, said that this may increase the three-year net profit of CSR Times Electric by 30%, exceeding the expected increase of 15%-20% after the merger of CNR and CSR.
Although it may gain more profits than China CSR and CNR, the share price of CSR Times Electric is not as good as the latter two. China CSR and CNR H shares both rose by more than 70% in the past week, while CSR Times Electric only rose by 13%. The current share price of CSR Times Electric is about HK$ 59.9, and the expected price-earnings ratio is 265,438+0 times, which is lower than the price-earnings ratio of CNR H shares of 26 times and China CSR H shares of 28 times.
As of today, the total market value of North-South vehicles exceeds 1 1000 billion US dollars, surpassing Boeing, the world's largest aircraft manufacturing leader (market value 1079 billion US dollars). In 20 14, CNR's total revenue was 224 billion (US$ 36.5 billion), its net profit was/kloc-0.08 billion (US$ 0.76 billion), and its orders in hand were 248 billion (US$ 40.4 billion). Boeing's revenue was $90.8 billion, its net profit was $5.45 billion, and its orders were $487 billion.