According to a research report from UBS, CRRC (01766) reported first-half 2025 revenue and net profit growth of 33% and 72% year-over-year respectively, reaching RMB 120 billion and RMB 7.2 billion, which was broadly in line with the profit warning.

During the period, gross margin and net margin increased by 0.4 and 1.4 percentage points year-over-year respectively, primarily benefiting from product structure upgrades. The company declared an interim dividend of RMB 0.11 per share, representing a payout ratio of 43.6%.

While the interim payout ratio did not reach last year's average level, management indicated that the full-year payout ratio will not be lower than historical levels. UBS has raised CRRC's target price from HK$6.6 to HK$7.5 while maintaining its "Buy" rating.