On Thursday, Deutsche Bank (ETR:DBKGn) reaffirmed its Buy rating on Alstom (EPA:ALSO) SA (ALO:FP) (OTC: ALSMY) stock with a price target of EUR25.00. The endorsement follows a recent visit by the bank's analysts to Alstom's Asia-Pacific (APAC) and India management presentations, including a tour of their factory in Sricity, India. The analyst left the visit with a positive impression of Alstom's team and its strategic position in the Asian market.
In the APAC region, Alstom reported sales of €2.4 billion in the fiscal year 2023/24, with a substantial backlog of €13.3 billion. The company has a significant footprint in the area, with 13 manufacturing sites, including five assembly facilities, and employs 18,000 people, plus an additional 9,000 through non-consolidated joint ventures (JVs) in China.
Alstom's operations in India contribute significantly to its revenue, with sales amounting to €835 million, which climbs to around €1 billion when including exports. Similarly, Australia and New Zealand generate approximately €1 billion in sales. In China, Alstom's consolidated JVs account for around €200 million in sales, and the group’s total income from affiliated companies in the region is approximately €130 million.
The APAC region is a key contributor to Alstom's overall revenue, representing 14% of the group's total revenues. It also constitutes a third of the group's engineering hours, supported by 6,900 engineering employees. This robust presence underscores the strategic importance of the APAC market to Alstom's global operations.
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