Risk factor
Modest price volatility
Profitability factor
Greatly overvalued vs peers
About
China Railway High-Speed Electrification Equipment Corporation Limited excels in the research, manufacturing, and system integration of Overhead Contact System (OCS) equipment and urban mass transit products. The company is a prominent supplier within China's power supply equipment sector, catering to electrified railways and urban rail networks. Its comprehensive product line includes a range of OCS components specifically designed for electrified railways that operate at speeds from 160 km/h up to 350 km/h. For urban rail transportation, it provides diverse OCS components such as flexible, rigid, and mobile suspension systems, third rails, and specialized parts for maglev and straddle monorail lines. Furthermore, its offerings encompass steel columns, power fittings, construction tools, induction boards, fasteners, and various aluminum alloy castings. Founded in 1958 and based in Baoji, China, the company operates as a subsidiary of China Railway Electric Industry Co., Ltd.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB