Table of contents
Our investment ideas: Buy CSR (A) for attractive long term growth and trough valuation 3
We use Director’s Cut (EV/GCI-basis) to derive our target price 23
CSR: suspension in locomotives temporary; prefer CSR’s MUs and RTV exposure 28
CNR: Long term growth intact and poised to bounce from beaten-up valuation 38
The authors would like to thank David Jin for his contribution.
The prices in the body of this report are based on the market close of May 10, 2012, unless otherwise indicated.