Citigroup: Give Zhuzhou CRRC Times Electric (03898) and CRRC Corporation (01766) a "buy" rating. Investors prefer CRRC.

Citigroup released a research report stating that due to strong growth in high-speed MU bidding and maintenance revenue, CRRC Corporation (01766) and Zhuzhou CRRC Times Electric (03898) are rated as "buy". However, investors are still concerned about the oversupply of Insulated Gate Bipolar Transistors (IGBT) which seems to be causing continuous price declines for IGBT products. This, however, will not affect the profitability of Zhuzhou CRRC Times Electric's semiconductor business. Therefore, investors are more inclined towards CRRC Corporation. The bank has slightly lowered the target price for Zhuzhou CRRC Times Electric by about 3% to 42 Hong Kong dollars.