Goldman Sachs research report indicates that CRRC (01766.HK) will slightly underperform expectations in Q4 2025, while Times Electric (03898.HK) will meet expectations, with the two companies showing differing performances in key business segments. The firm has lowered its earnings per share forecast for CRRC from 0% to 5% for 2026 to 2030, and has reduced its forecast for Times Electric from 0% to 4%.
As a result, the firm has adjusted the target prices for CRRC H shares and CRRC (601766.SH) A shares from HKD 6.5 and RMB 5.9 to HKD 6.2 and RMB 5.6, maintaining a "Buy" rating for CRRC H shares and a "Neutral" rating for CRRC A shares. Additionally, the firm has lowered the target prices for Times Electric (688187.SH) A shares and Times Electric H shares from RMB 59.3 and HKD 43.9 to RMB 55.6 and HKD 40.7, maintaining a "Neutral" rating for both Times Electric A and H shares.
Looking ahead, the firm expects moderate overall growth for both companies. For CRRC, the strong momentum in overseas business will be offset by adverse factors in domestic railway and urban rail businesses. As for Times Electric, emerging industries will continue to drive revenue growth, but the firm anticipates that intensified price competition and the initial costs of new IGBT capacity will exert some pressure on profit margins