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China Railway Group Class H (HK:0390)
:0390
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China Railway Group (0390) AI Stock Analysis

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HK:0390

China Railway Group

(OTC:0390)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
HK$4.50
▲(16.58% Upside)
The stock's overall score is driven by its strong valuation, with a low P/E ratio and high dividend yield making it attractive. Financial performance is solid but hampered by cash flow issues and high leverage. Technical analysis indicates mixed signals, with short-term bearish trends but long-term stability.

China Railway Group (0390) vs. iShares MSCI Hong Kong ETF (EWH)

China Railway Group Business Overview & Revenue Model

Company DescriptionChina Railway Group Limited (0390) is one of the largest construction and engineering firms in China, primarily engaged in the design, construction, and operation of railways, highways, urban transit systems, and other infrastructure projects. The company operates through various sectors, including Engineering Construction, Survey and Design, and Equipment Manufacturing. Its core services encompass the construction of railways, roads, water conservancy projects, and urban infrastructure, along with the provision of technology and consulting services related to these sectors.
How the Company Makes MoneyChina Railway Group generates revenue primarily through its engineering and construction contracts, which involve large-scale infrastructure projects both domestically and internationally. The company earns income from constructing railways, highways, and urban transit systems, often receiving payments based on project milestones or completion. Additionally, it has significant revenue streams from its Survey and Design segment, where it provides engineering design services. The Equipment Manufacturing sector also contributes by producing machinery and equipment used in construction. Partnerships with government entities and state-owned enterprises are crucial, as many of its projects are funded by public investments. The company's involvement in international projects has been expanding, further diversifying its revenue sources.

China Railway Group Financial Statement Overview

Summary
China Railway Group shows strong profitability and effective cost management, but faces challenges in revenue consistency and high leverage. The cash flow position is concerning, with negative free cash flow highlighting an area for improvement.
Income Statement
78
Positive
China Railway Group has demonstrated strong revenue growth and solid profitability. The TTM (Trailing-Twelve-Months) Gross Profit Margin is approximately 10.01%, and the Net Profit Margin is 2.31%. However, the revenue has decreased by 9.38% from the previous year, indicating some volatility. The EBIT and EBITDA margins are healthy at 3.19% and 4.59%, respectively, showcasing effective cost management despite the revenue dip.
Balance Sheet
70
Positive
The company's balance sheet reveals a moderate Debt-to-Equity Ratio of 1.41, indicating substantial leverage, which could pose financial risks. ROE stands at 7.27%, reflecting a reasonable return on shareholders’ equity. The Equity Ratio is 16.01%, suggesting a balanced but cautious approach to financing with equity.
Cash Flow
62
Positive
The cash flow situation is challenging, with negative Free Cash Flow in the TTM period. Operating Cash Flow to Net Income Ratio is negative, indicating cash flow issues despite recorded net income. The Free Cash Flow to Net Income Ratio is -1.43, suggesting that the company is struggling to convert net income into free cash due to high capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.13T1.16T1.26T1.15T1.07T974.75B
Gross Profit111.99B116.34B129.98B115.57B109.57B99.17B
EBITDA49.38B48.64B53.56B73.34B67.71B38.70B
Net Income25.44B27.89B33.48B31.27B27.62B25.19B
Balance Sheet
Total Assets2.38T2.26T1.83T1.61T1.36T1.20T
Cash, Cash Equivalents and Short-Term Investments204.78B262.09B243.39B248.76B186.07B179.83B
Total Debt526.72B467.10B380.07B390.36B295.58B241.29B
Total Liabilities1.86T1.75T1.37T1.19T1.00T886.93B
Stockholders Equity366.75B354.71B332.53B301.23B275.27B255.34B
Cash Flow
Free Cash Flow-33.29B-29.95B-20.08B-18.76B-42.90B-12.30B
Operating Cash Flow-79.63B28.05B38.36B43.55B13.07B30.99B
Investing Cash Flow-73.30B-82.29B-74.64B-84.39B-77.46B-63.14B
Financing Cash Flow58.56B57.39B27.13B96.36B67.37B40.20B

China Railway Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.86
Price Trends
50DMA
3.97
Negative
100DMA
3.95
Negative
200DMA
3.71
Positive
Market Momentum
MACD
-0.03
Positive
RSI
43.05
Neutral
STOCH
12.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0390, the sentiment is Negative. The current price of 3.86 is below the 20-day moving average (MA) of 3.97, below the 50-day MA of 3.97, and above the 200-day MA of 3.71, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.05 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0390.

China Railway Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
€32.82B12.038.27%5.38%11.89%8.49%
72
Outperform
HK$138.29B3.707.41%5.01%-7.46%-21.80%
67
Neutral
HK$48.91B4.9713.70%6.75%-5.14%-4.05%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
HK$74.50B11.533.80%2.85%-18.36%-47.29%
56
Neutral
€69.00B5.597.78%3.73%11.49%-7.01%
45
Neutral
HK$15.86B75.783.35%-1.75%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0390
China Railway Group
3.89
0.41
11.65%
HK:3311
China State Construction International Holdings
9.30
-1.22
-11.60%
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.13
0.20
21.37%
HK:1618
Metallurgical Corporation of China Ltd. Class H
2.15
0.61
39.88%
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
7.44
2.23
42.77%
HK:2068
China Aluminum International Engineering Corporation Limited Class H
2.44
0.44
22.00%

China Railway Group Corporate Events

China Railway Group Updates 2025 Interim Dividend Plan
Oct 31, 2025

China Railway Group Limited has announced an update to its 2025 Interim Dividend Plan, declaring an ordinary interim dividend of RMB 0.082 per share for the financial year ending December 31, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders, although specific details such as the exchange rate, ex-dividend date, and payment date are yet to be disclosed.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$5.30 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Announces 2025 Interim Dividend Plan
Oct 31, 2025

China Railway Group Limited has announced its interim dividend plan for 2025, declaring a dividend of RMB 0.082 per share for the financial year ending December 31, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence its market positioning by showcasing financial stability and shareholder confidence.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$5.30 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Reports Decline in Q3 2025 Financial Results
Oct 30, 2025

China Railway Group Limited announced its unaudited financial results for the third quarter ending September 30, 2025, revealing a decline in revenue and profits compared to the previous year. The company’s revenue decreased by 4.53% to RMB 262.72 billion, while net profit attributable to shareholders fell by 9.98% to RMB 5.66 billion. The financial results indicate challenges in the operating environment, impacting the company’s profitability and cash flow, with significant decreases in net cash generated from operating activities.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$5.30 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Announces 2025 Interim Dividend Plan
Oct 30, 2025

China Railway Group Limited has announced its 2025 Interim Dividend Plan, which includes a cash dividend of RMB 0.082 per share. The plan, approved by the company’s 2024 annual general meeting, reflects the company’s commitment to providing reasonable returns to shareholders while supporting its long-term development. The total share capital as of October 30, 2025, was over 24 billion shares, with adjustments to the total distribution amount to be made if necessary. This announcement underscores China Railway’s strategic focus on balancing shareholder returns with sustainable growth, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$5.30 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Reports Q3 2025 Growth in New Contracts
Oct 21, 2025

China Railway Group Limited has released its major operating information for the third quarter of 2025, highlighting a 3.7% year-on-year increase in the total value of new contracts across its business segments. Significant growth was observed in asset operation and resource utilization, with increases of 108.6% and 12.8% respectively, indicating a strategic shift towards these areas. However, there were declines in equipment manufacturing and finance and merchandise trading, reflecting challenges in these sectors.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Initiates A Share Repurchase Plan
Oct 21, 2025

China Railway Group Limited has announced the first repurchase of certain A shares through centralized bidding trading, with an expected repurchase amount ranging from RMB800 million to RMB1,600 million. This strategic move, aimed at reducing the registered capital, involves the use of self-owned funds and a special loan, reflecting the company’s commitment to optimizing its capital structure and enhancing shareholder value.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Schedules Board Meeting for Quarterly Results and Dividend Consideration
Oct 17, 2025

China Railway Group Limited has announced that its board of directors will meet on October 30, 2025, to approve the company’s quarterly results for the nine months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Secures Major Infrastructure Project Bids
Sep 25, 2025

China Railway Group Limited has announced winning bids for major infrastructure projects, including sections of the Changsha-Ganzhou high-speed railway and the Linha Railway capacity expansion. These projects, with substantial bid amounts and long project durations, are expected to enhance the company’s market position and contribute to its growth in the railway construction sector.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Reports H1 2025 Earnings
Aug 30, 2025

China Railway Group Limited, a leading global construction conglomerate, specializes in engineering, construction, and related services across various sectors including railway, highway, and urban infrastructure. In its latest earnings report for the first half of 2025, the company highlighted a slight decrease in revenue and profit compared to the previous year, with a total revenue of 511 billion yuan and a net profit of 11.8 billion yuan. Key financial metrics showed a decline in operating income by 5.93% and net profit by 17.17%, attributed to challenges in domestic and international markets. Despite these challenges, the company secured new contracts worth 11.1 trillion yuan, marking a 2.8% increase, with significant growth in overseas contracts. Looking forward, China Railway Group remains focused on enhancing its core capabilities and expanding its market presence, aiming for sustainable growth and value creation in the coming years.

China Railway Group Reports Decline in 2025 Interim Results
Aug 29, 2025

China Railway Group Limited announced its unaudited interim results for the first half of 2025, reporting a decline in revenue and profit compared to the previous year. The company experienced a 5.9% decrease in total revenue, with significant drops in infrastructure construction and equipment manufacturing sectors. Despite the downturn, property development saw a slight increase in revenue. The results reflect challenges in the construction sector, impacting the company’s financial performance and market positioning.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Announces Board Committee Changes
Aug 29, 2025

China Railway Group Limited has announced a change in the composition of its Safety, Health and Environmental Protection Committee. The committee now includes five directors, with Mr. Chen Wenjian serving as the Chairman. This change is part of the company’s ongoing efforts to enhance its governance in safety, health, and environmental protection, which are crucial areas for its operations and industry positioning.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Announces Board Composition and Committee Roles
Aug 29, 2025

China Railway Group Limited has announced the composition of its board of directors and the roles within its five board committees. This announcement reflects the company’s strategic focus on governance and operational oversight, potentially impacting its decision-making processes and stakeholder engagement.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Enhances Audit and Risk Management Procedures
Aug 29, 2025

China Railway Group Limited has amended its Rules of Procedures for the Audit and Risk Management Committee to enhance its supervisory role over financial information, risk management, and internal and external audits. The amendments aim to strengthen the committee’s effectiveness in reviewing financial disclosures and internal controls, thereby potentially improving the company’s governance and risk management practices.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Enhances Governance with Amended Remuneration Committee Rules
Aug 29, 2025

China Railway Group Limited has amended the rules for its Remuneration and Appraisal Committee to enhance governance and oversight of director and senior management compensation. The committee, composed mainly of independent non-executive directors, is tasked with formulating appraisal standards, reviewing remuneration policies, and ensuring fair compensation practices. These changes aim to align the company’s governance practices with regulatory standards and improve decision-making processes related to executive compensation.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Updates Nomination Committee Procedures
Aug 29, 2025

China Railway Group Limited has amended the rules of procedures for its Nomination Committee, which is responsible for advising the board of directors on personnel nominations and management systems. The changes aim to enhance the committee’s effectiveness in selecting and recommending qualified candidates for directorship and senior management positions, thereby supporting the company’s corporate strategy and governance structure.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

Tragic Incident at China Railway’s Jianzha Yellow River Bridge
Aug 24, 2025

China Railway Group Limited announced a tragic incident involving the Jianzha Yellow River Bridge, where a cable broke, resulting in the death of 12 people and four missing. The company has initiated emergency response plans and is cooperating with government authorities for rescue and investigation efforts. Despite the severity of the incident, it is not expected to significantly impact the company’s overall operations and performance.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Schedules Board Meeting to Approve Interim Results
Aug 19, 2025

China Railway Group Limited has announced a board meeting scheduled for August 29, 2025, to approve the interim results for the first half of the year. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the year.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.80 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 01, 2025