CRRC Surges Over 5% in Morning Trading as Institutions Expect Railway Investment to Remain High This Year

Deep News
Aug 21

CRRC (01766) jumped 5.16% in morning trading, currently trading at HK$6.11 with a turnover of HK$187 million.

On August 19, China Railway Group released a tender announcement for the second batch of 350 km/h Fuxing intelligent electric multiple units (EMUs) procurement project for 2025. The tender involves 108 sets of 350 km/h Fuxing intelligent EMUs (8-car standard type), 30 sets of 350 km/h Fuxing intelligent EMUs (8-car cold-resistant type), and 72 sets of 350 km/h Fuxing intelligent EMUs (16-car standard type, equivalent to 36 trains), totaling 210 standard sets.

China Galaxy Securities noted that the second batch of EMU tenders for 2025 exceeded expectations. Since the beginning of this year, China Railway Group has cumulatively tendered 278 sets of 350 km/h EMUs (68 sets in April plus 210 sets this time), achieving continued growth compared to last year's high base of 265.5 sets tendered by national and local railways (246.5 sets by China Railway + 4 sets by Meilong Railway + 15 sets by Guangzhou-Zhanjiang Railway). Additionally, China Railway Group has conducted two rounds of high-level EMU maintenance tenders this year, totaling 663.5 sets (90.25 sets for Level 3 maintenance + 235.25 sets for Level 4 maintenance + 338 sets for Level 5 maintenance), with tender quantities slightly lower than the same period last year. The tenders by China Railway Group since the beginning of this year align with the firm's previous judgment that both new EMU manufacturing and high-level maintenance tenders are expected to remain at high levels in 2025.

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