CRRC (01766) saw its shares decline by more than 7% after the announcement of its annual results. As of the time of writing, the stock was down 6.67%, trading at HK$4.9 with a turnover of HK$86.4131 million. The company reported its full-year financial performance, with revenue for 2025 reaching RMB 273.063 billion, an increase of 10.79% year-on-year. Net profit attributable to shareholders rose by 6.40% to RMB 13.181 billion. However, in the fourth quarter alone, revenue fell by 4.99% to RMB 89.198 billion, while net profit attributable to shareholders dropped sharply by 37.45% to RMB 3.217 billion. It is noteworthy that CRRC's railway equipment business generated revenue of RMB 123.608 billion in 2025, up 11.90% year-on-year, primarily driven by growth in multiple-unit trains and locomotive operations. In contrast, revenue from the urban rail and urban infrastructure segment decreased by 7.37% to RMB 42.09 billion, mainly due to lower income from urban rail vehicles. Everbright Securities issued a research report stating that, considering the impact of the downturn in the urban rail industry on the company's performance, it has lowered its net profit forecasts for 2026 and 2027 by 3% and 3%, respectively, to RMB 14.296 billion and RMB 15.387 billion.
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