Zhuzhou CSR Times Electric more than doubles profit
Zhuzhou CSR Times Electric, an indirect subsidiary of mainland train maker CSR Corp, has more than doubled its net profit for the first nine months of the year from the year-earlier period.
Zhuzhou CSR Times Electric, an indirect subsidiary of mainland train maker CSR Corp, has more than doubled its net profit for the first nine months of the year from the year-earlier period.
The company posted net profit of 1.75 billion yuan (HK$2.2 billion) for the nine months, a jump of 106 per cent from the same period in 2013, it said in a filing to the Hong Kong stock exchange on Friday.
Revenue soared 82.5 per cent from a year ago to 3.99 billion yuan, and gross profit margin increased by 1.8 percentage points to 39.6 per cent.
The increase in profit was due mainly to a large number of orders that the company received late last year for systems used in high-speed trains, said Gary Wong, an analyst at Guotai Junan Securities. These sales were booked this year.
The company manufactures train-borne electrical systems, such as locomotive train power converters.
Shares in Zhuzhou CSR Times Electric closed up 1.8 per cent at HK$33.35 on Friday, after reaching a 52-week high of HK$34.85 earlier in the session.
CSR Corp said on Wednesday that it had recently won contracts totalling 30.9 billion yuan, equivalent to 31.5 per cent of its operating revenue last year. The contracts include supplying train units worth 23.94 billion yuan to mainland’s national rail operator China Railway Corp, and metro carriages worth 310 million yuan to Mumbai, India.
