China Railway Group Limited Class H (HK:0390)
:0390
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China Railway Group
(0390)
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Rating:52Neutral
Price Target:
HK$4.00
â–²(3.63% Upside)
Action:DowngradedDate:04/04/26
The score is primarily constrained by weak financial quality—especially consistently negative free cash flow and poor cash conversion, alongside higher leverage and recent revenue/net income pressure. Technicals also reflect a weak trend (below key moving averages with negative MACD), partially offset by oversold indicators. Valuation is a clear positive with a very low P/E and high dividend yield, but it does not fully offset the cash-flow risk.
Positive Factors
Scale & contracting franchise
China Railway's very large revenue base and broad infrastructure scope create durable advantages in bidding for major government and SOE contracts. Scale supports absorption of fixed costs, cross-selling of design/manufacturing services, and competitive positioning on multi‑project pipelines over the medium term.
Negative Factors
Persistent negative free cash flow
Repeated negative free cash flow signals chronic working‑capital strain and weak earnings‑to‑cash conversion. Over months to a few years this forces reliance on external financing, limits reinvestment, and increases vulnerability to funding cost rises or payment delays from large project counterparties.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & contracting franchise
China Railway's very large revenue base and broad infrastructure scope create durable advantages in bidding for major government and SOE contracts. Scale supports absorption of fixed costs, cross-selling of design/manufacturing services, and competitive positioning on multi‑project pipelines over the medium term.
Read all positive factors
China Railway Group (0390) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$137.89B
Dividend Yield7.43%
Average Volume (3M)19.62M
Price to Earnings (P/E)4.1
Beta (1Y)0.96
Revenue Growth-5.68%
EPS Growth-21.80%
CountryHK
Employees297,359
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.20
Shares Outstanding4,207,390,000
10 Day Avg. Volume19,303,731
30 Day Avg. Volume19,621,398
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)0.25
Price to Sales (P/S)0.08
P/FCF Ratio-2.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.65Price Target Upside20.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.92
Revenue Forecast (FY)HK$1.05T
China Railway Group Business Overview & Revenue Model
Company Description
China 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...
How the Company Makes Money
China Railway Group makes money mainly by contracting and delivering large-scale infrastructure and construction projects. Its core revenue stream is project-based construction contracting income earned under customer contracts (typically governme...
China Railway Group Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.09T | 1.16T | 1.26T | 1.15T | 1.07T |
| Gross Profit | 104.72B | 116.34B | 129.98B | 115.57B | 109.57B |
| EBITDA | 66.60B | 48.64B | 53.56B | 73.34B | 67.71B |
| Net Income | 22.89B | 27.89B | 33.48B | 31.27B | 27.62B |
Balance Sheet | |||||
| Total Assets | 2.47T | 2.26T | 1.83T | 1.61T | 1.36T |
| Cash, Cash Equivalents and Short-Term Investments | 266.30B | 262.09B | 243.39B | 248.76B | 186.07B |
| Total Debt | 520.19B | 467.10B | 380.07B | 390.36B | 295.58B |
| Total Liabilities | 1.93T | 1.75T | 1.37T | 1.19T | 1.00T |
| Stockholders Equity | 371.06B | 354.71B | 332.53B | 301.23B | 275.27B |
Cash Flow | |||||
| Free Cash Flow | -31.51B | -29.95B | -20.08B | -18.76B | -42.90B |
| Operating Cash Flow | 28.77B | 28.05B | 38.36B | 43.55B | 13.07B |
| Investing Cash Flow | -45.26B | -82.29B | -74.64B | -84.39B | -77.46B |
| Financing Cash Flow | 28.68B | 57.39B | 27.13B | 96.36B | 67.37B |
China Railway Group Technical Analysis
Negative
3.86
Price Trends
4.46
Negative
4.20
Negative
4.02
Positive
Market Momentum
-0.12
Negative
39.35
Neutral
44.93
Neutral
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 4.13, below the 50-day MA of 4.46, and below the 200-day MA of 4.02, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 39.35 is Neutral, neither overbought nor oversold. The STOCH value of 44.93 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$27.73B | 17.27 | 5.62% | 5.31% | 9.27% | -27.28% | |
62 Neutral | HK$47.91B | 4.99 | 11.89% | 6.69% | -5.48% | -4.24% | |
53 Neutral | HK$19.47B | 12.30 | 6.68% | ― | -3.60% | 16.93% | |
52 Neutral | HK$137.89B | 4.06 | 6.46% | 7.43% | -5.68% | -21.80% | |
48 Neutral | HK$81.83B | 6.98 | 5.22% | 3.90% | 3.96% | -30.31% | |
44 Neutral | HK$63.92B | 5.71 | 0.95% | 3.21% | -17.51% | -81.25% |
* Industrials Sector Average
HK:0390
China Railway Group
3.95
0.85
27.50%
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9.08
-1.72
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1.27
0.31
31.88%
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1.61
0.19
13.30%
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23.31%
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44.38%
China Railway Group Corporate Events
China Railway Group Updates Market on A-Share Buyback Progress
Mar 31, 2026
China Railway Group has reported progress on its previously approved A-share repurchase plan, which runs from 20 June 2025 to 19 June 2026 and targets a total buyback size of RMB800 million to RMB1.6 billion. The programme, funded by self-owned fu...
China Railway Group Proposes Final 2025 Cash Dividend of RMB 0.086 per Share
Mar 31, 2026
China Railway Group Limited has proposed a final ordinary cash dividend of RMB 0.086 per share for the financial year ended 31 December 2025, according to its 2025 results announcement. Key implementation details, including the ex-dividend date, r...
China Railway Group Revamps Key Board Committees to Sharpen Strategy and Risk Oversight
Mar 30, 2026
China Railway Group Limited has reshuffled the membership of its Strategy and Investment Committee and its Safety, Health and Environmental Protection Committee, effective 30 March 2026, while leaving other board committees unchanged. The move pla...
China Railway Group Details Board and Committee Structure
Mar 30, 2026
China Railway Group has disclosed the current composition of its board of directors, detailing the roles of executive, non-executive, and independent non-executive members. The board is chaired by executive director Chen Wenjian, with Zhao Dianlon...
China Railway Group Sets March 2026 Board Meeting to Approve 2025 Results and Consider Dividend
Mar 18, 2026
China Railway Group Limited has scheduled a board meeting for 30 March 2026 in Beijing to review and approve the annual results for the financial year ended 31 December 2025. The board will also consider proposing a final dividend, a decision that...
China Railway Group Announces Executive Director’s Retirement and Board Role Changes
Mar 2, 2026
China Railway Group has announced that executive director Wang Shiqi will resign from the board, the Safety, Health and Environmental Protection Committee and all positions at the company effective 2 March 2026 due to retirement. The board emphasi...
China Railway Group Details Board and Committee Structure
Mar 2, 2026
China Railway Group Limited has confirmed the composition of its board of directors, listing executive, non-executive, and independent non-executive members, with Chairman Chen Wenjian leading the Board. The disclosure underscores a structured gov...
China Railway Group Updates A-Share Buyback Progress and Capital Reduction Plan
Mar 2, 2026
China Railway Group Limited has provided an update on its ongoing A-share repurchase programme, approved at its 2024 annual general meeting and subsequent class meetings. The plan, running from 20 June 2025 to 19 June 2026, targets a buyback of RM...
China Railway Group Appoints New Executive Director at 2026 Extraordinary Meeting
Feb 6, 2026
China Railway Group Limited held its first extraordinary general meeting of 2026 in Beijing on 6 February, combining on-site and online voting, with shareholders and proxies representing 55.71% of the company’s issued share capital participa...
China Railway Group Outlines Board and Committee Structure
Feb 6, 2026
China Railway Group Limited has announced the composition of its board of directors and detailed the allocation of roles across five key board committees as of 6 February 2026 in Beijing. The board comprises three executive directors, two non-exec...
China Railway Group Updates on A-Share Buyback Progress and Capital Reduction Plan
Feb 2, 2026
China Railway Group Limited has provided an update on its ongoing A-share repurchase plan, originally disclosed on 30 April 2025 and effective from 20 June 2025 to 19 June 2026. The company plans to spend between RMB800 million and RMB1.6 billion ...
China Railway Group Wins Over RMB 2.3 Billion in Major Railway Contracts
Jan 29, 2026
China Railway Group Limited has announced that several of its key engineering subsidiaries have collectively secured a series of major railway construction and renovation contracts in China, including general contracting work on the DongjiakouR...
China Railway Group Posts Modest 2025 Contract Growth as Emerging Segments Accelerate
Jan 19, 2026
China Railway Group Limited reported major operating data for the fourth quarter and full year 2025, highlighting a total value of new contracts of RMB 1.166 trillion in the fourth quarter and RMB 2.751 trillion for the year, representing a modest...
China Railway Group Calls February EGM to Elect New Executive Director
Jan 15, 2026
China Railway Group Limited has called its first extraordinary general meeting of 2026 for 6 February in Beijing, where shareholders will vote on the election of Zhao Dianlong as an executive director for the remainder of the sixth board’s t...
China Railway Group Cancels Restricted Shares After Missing 2024 Performance Targets
Jan 14, 2026
China Railway Group has announced the repurchase and cancellation of 63,700 restricted shares from one participant under its 2021 Restricted Share Incentive Scheme after company-level performance targets for the third unlocking period in 2024 were...
China Railway Group Names Zhao Dianlong President and Nominates Him as Executive Director
Jan 9, 2026
China Railway Group Limited has appointed veteran railway engineer Zhao Dianlong as president, effective 9 January 2026, for the remainder of the current board’s term, while also nominating him as an executive director subject to shareholder...
China Railway Group Updates Market on Progress of A-Share Buyback Plan
Jan 4, 2026
China Railway Group Limited has provided an update on its ongoing A-share repurchase programme, which was approved at its 2024 annual general meeting and relevant class meetings and is being implemented between 20 June 2025 and 19 June 2026 via ce...
China Railway Group Clears Second Unlocking Period for 2021 Restricted Share Incentive Scheme
Jan 4, 2026
China Railway Group has confirmed that the conditions for the second unlocking period of the reserved grant under its 2021 Restricted Share Incentive Scheme have been met, following board approval at the 17th meeting of the sixth session held on 3...
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.