Artisan Sustainable Emerging Markets Fund on Zhuzhou CRRC Times Electric Co., Ltd.
Thesis
Zhuzhou CRRC Times Electric is a leading supplier of electrical systems and equipment serving China's railway and energy markets. The investment team continues to identify opportunities in the company's core operations, supported by investment in railway infrastructure and broader electrification trends. These structural drivers underpin the long-term opportunity for the company's products and services. However, the stock declined during Q3 2026 following weaker-than-expected earnings, with foreign-exchange losses contributing to the disappointing financial performance. The manager acknowledges uneven operational execution and continues to reassess the investment case rather than assuming the recent weakness is temporary.
“We continue to see opportunity in the company’s core business segments, supported by investment in rail infrastructure and broader electrification trends.”
Key risks
- Weaker-than-expected earnings and the possibility of further financial disappointments
- Foreign-exchange losses negatively affecting reported financial results
- Uneven operational execution and uncertainty regarding the company's ability to deliver on its investment case