Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
China Railway Group, or CRG, and its peer China Railway Construction operate as a duopoly in China's railway construction market. In 2014, CRG held about 46% market share in the domestic railway infrastructure segment, and about 50% in urban rail construction. The firm has been the main beneficiary of China's high-speed railway boom and has seen its revenue grow at a CAGR of 11% since 2009. With high-speed railway spending to average at CNY 800 billion-CNY 850 billion per year until 2020, we exp...
No-moat China Railway Group, or CRG, reported 2018 second-half results below our estimates. As a result of the adoption of a new accounting policy, the group booked a one-off impairment loss of CNY 5.3 billion during the latter six months of 2018. Excluding the impairment, CRG’s second-half operating profit would have been more in line with our estimates. The 60 basis points uptick in gross margin was driven by rising contribution from public-private-partnership projects, which require the gro...
No-moat China Railway Group, or CRG, reported 2018 second-half results below our estimates. As a result of the adoption of a new accounting policy, the group booked a one-off impairment loss of CNY 5.3 billion during the latter six months of 2018. Excluding the impairment, CRG’s second-half operating profit would have been more in line with our estimates. The 60 basis points uptick in gross margin was driven by rising contribution from public-private-partnership projects, which require the gro...
No-moat China Railway Group, or CRG, reported 2018 second-half results below our estimates. As a result of the adoption of a new accounting policy, the group booked a one-off impairment loss of CNY 5.3 billion during the latter six months of 2018. Excluding the impairment, CRG’s second-half operating profit would have been more in line with our estimates. The 60 basis points uptick in gross margin was driven by rising contribution from public-private-partnership projects, which require the gro...
No-moat China Railway Group, or CRG, reported 2018 second-half results below our estimates. As a result of the adoption of a new accounting policy, the group booked a one-off impairment loss of CNY 5.3 billion during the latter six months of 2018. Excluding the impairment, CRG’s second-half operating profit would have been more in line with our estimates. The 60 basis points uptick in gross margin was driven by rising contribution from public-private-partnership projects, which require the gro...
For 2019, Chinese local governments will be allowed to issue CNY 2.15 trillion special purpose bonds, increasing more than 50% from last year. Since these bonds are a key funding source for infrastructure projects, we think the jump in quota signals the central authority’s will to encourage government-driven infrastructure projects to stimulate GDP growth. While we anticipate infrastructure investment to rebound in 2019, much of that expectation has already baked into our valuation for no-moat...
For 2019, Chinese local governments will be allowed to issue CNY 2.15 trillion special purpose bonds, increasing more than 50% from last year. Since these bonds are a key funding source for infrastructure projects, we think the jump in quota signals the central authority’s will to encourage government-driven infrastructure projects to stimulate GDP growth. While we anticipate infrastructure investment to rebound in 2019, much of that expectation has already baked into our valuation for no-moat...
No-moat China Railway Group, or CRG, reported a solid nine-month result that is on track to meet our full-year estimate. The company’s revenue expanded by 5% year over year, in line with our estimate. CREC’s net income rose at 19% year on year to CNY 13.2 billion amid gross margin expansion from its core infrastructure operation. We maintain our fair value estimate of HKD 7.50 or CNY 6.70 per share on the company and consider the current market price fairly valued. In the first nine months,...
No-moat China Railway Group, or CRG, reported a solid nine-month result that is on track to meet our full-year estimate. The company’s revenue expanded by 5% year over year, in line with our estimate. CREC’s net income rose at 19% year on year to CNY 13.2 billion amid gross margin expansion from its core infrastructure operation. We maintain our fair value estimate of HKD 7.50 or CNY 6.70 per share on the company and consider the current market price fairly valued. In the first nine months,...
China Railway Group, or CRG, and its peer China Railway Construction operate as a duopoly in China's railway construction market. In 2014, CRG held about 46% market share in the domestic railway infrastructure segment, and about 50% in urban rail construction. The firm has been the main beneficiary of China's high-speed railway boom and has seen its revenue grow at a CAGR of 11% since 2009. With high-speed railway spending to average at CNY 800 billion-CNY 850 billion per year until 2020, we exp...
No-moat China Railway Group's strong 21.6% increase in first-half recurring net profit to CNY 9.6 billion was higher than our expectations. This was driven by higher investment income and effective cost controls, which drove net margin to expand by 0.4% to 2.9% in the first half, while 5.3% revenue growth was largely in line with our expectations. In the first half, CRG’s overall new order growth rose 13% to CNY 634 billion, led by 17.5% growth in municipal projects and 10.4% in railway infras...
No-moat China Railway Group's strong 21.6% increase in first-half recurring net profit to CNY 9.6 billion was higher than our expectations. This was driven by higher investment income and effective cost controls, which drove net margin to expand by 0.4% to 2.9% in the first half, while 5.3% revenue growth was largely in line with our expectations. In the first half, CRG’s overall new order growth rose 13% to CNY 634 billion, led by 17.5% growth in municipal projects and 10.4% in railway infras...
No-moat China Railway Group's strong 21.6% increase in first-half recurring net profit to CNY 9.6 billion was higher than our expectations. This was driven by higher investment income and effective cost controls, which drove net margin to expand by 0.4% to 2.9% in the first half, while 5.3% revenue growth was largely in line with our expectations. In the first half, CRG’s overall new order growth rose 13% to CNY 634 billion, led by 17.5% growth in municipal projects and 10.4% in railway infras...
CHINA RAILWAY GROUP LTD. (CN), a company active in the Heavy Construction industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date July 17, 2018, the closing price was...
No-moat China Railway Group's first quarter was solid with net income rising 19.5% year on year to CNY 3 billion, mainly on effective cost controls, while revenue was up 10% year on year to CNY 147.6 billion. CRG’s robust new order growth, especially in the more profitable urban rail contract, should help the company maintain its current margin level, while the solid noninfrastructure segment performance should provide an additional buffer to the bottom line. We maintain our fair value estimat...
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