GLONGHUI, April 16 | According to the GF Securities Research Report, CRRC's Q1 performance increased significantly, mainly due to changes in product structure and base figure. The company expects to achieve net profit of 923-1,046 million yuan in Q1, an increase of 50%-70% over the previous year. The company has a logic of domestic demand improvement+equipment renewal, and has the attributes of state-owned enterprise reform+dividend assets. The profit margin is expected to increase under changes in the business structure. The company's net profit is expected to reach 135/151/16.8 billion yuan in 24-26. Referring to comparable company valuations and the company's historical valuation center, considering that many of the company's businesses have the potential to release greater profit flexibility in the future, the company was given a PE valuation of 18x in 2024, corresponding to a reasonable value of 8.42 yuan/share for A shares; considering the AH share premium factor, corresponding to a reasonable value of HK$5.07 per share for H shares, they were all given a “buy” rating.