Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
CRCC High-Tech Equipment Corporation Limited (CRCCE) focuses on the development, manufacturing, and global distribution of specialized heavy-duty machinery for railway track upkeep, catering to markets in Mainland China and internationally. Its diverse range of rail maintenance equipment encompasses tamping machines, ballast cleaning and stabilization units, ballast regulators, materials logistics machines, and rail processing equipment. The company also provides various other substantial railway infrastructure maintenance solutions, such as catenary inspection, maintenance, and installation machines. Beyond its comprehensive machinery offerings, CRCCE produces, sources, and supplies a wide array of critical components, including bogies, electrical control systems, working devices, wheelsets, transmissions, pumps, valves, motors, and drive shafts. Moreover, CRCCE delivers comprehensive overhaul services, covering repairs, upgrades, and remanufacturing, alongside general maintenance services for both new and existing railway lines. Founded in 1954 and based in Kunming, China, the company was known as Kunming China Railway Large Maintenance Machinery Group Co., Ltd. until it adopted its current name in June 2015. CRCCE operates as a subsidiary of China Railway Construction Corporation Limited.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD