The operating performance of CRRC (601766) in the first quarter of 2026 was solid. Below is a summary of the key changes, outlook for the coming quarter, and EPS forecasts for the next year:
Key Changes This Quarter
- Revenue Growth Momentum: Revenue increased by 10.57% year-over-year, primarily driven by strong performance in the railway equipment segment (specifically EMU and passenger train demand) and sustained contributions from the new industry segment (including new energy equipment).
- Stable Profit Growth: Net profit attributable to shareholders increased by 10.66% year-over-year, reflecting execution efficiency in market expansion and order delivery.
- Financial Structure Characteristics: Net cash flow from operating activities showed a significant net outflow of 9.08B RMB, primarily affected by seasonal procurement and the rhythm of product deliveries. Additionally, exchange rate fluctuations led to higher financial expenses compared to the same period last year.
- Management Changes: The company recently adjusted its President and Chief Financial Officer positions; the market is focused on the new management’s strategic direction for optimizing future profitability.
Outlook for Next Quarter and the Full Year
- Business Support: As domestic railway transportation demand maintains growth, the China State Railway Group has launched several major procurement tenders (including Fuxing intelligent EMUs, new freight cars, and maintenance projects), providing clear performance support for the railway equipment segment.
- Segment Strategy:
- Urban Rail Business: Striving to maintain scale, with structural adjustments possible based on market demand.
- New Industry Segment: Expected to achieve further moderate growth based on last year’s solid performance, continuing to expand wind power and energy storage-related businesses.
- Risk Management: The company is actively responding to potential adverse factors such as raw material price volatility and geopolitical changes, with the goal of achieving stable and progressive performance for the full year.
EPS Forecast for the Next Year
Based on statistics from market research institutions (such as iFind Financial Services) and analyst views:
- 2026 Forecasted EPS: Approximately 0.50 RMB.
- Growth Trend: It is estimated that the net profit attributable to shareholders for the full year 2026 will reach approximately 14.37B RMB, an increase of approximately 9.05% year-over-year.
The information above is integrated from the summary of CRRC’s 2026 first-quarter earnings conference and public financial data. For investment analysis, please pay attention to subsequent tender announcements from the China State Railway Group and the company’s inter-quarterly order delivery progress.
Source:
- https://stockmc.xueqiu.com/202604/601766_20260430_8C2E.pdf
- https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=601766&id=12276541
- https://finance.sina.com.cn/stock/relnews/hk/2026-04-30/doc-imyxpwic4834861.shtml
- https://tradingeconomics.com/china/stock-market/crrc-corporation-limited
- https://q.stock.sohu.com/cn/601766/index.shtml
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