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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)

Rating:66Neutral
Price Target:
HK$4.00
▲(4.17% Upside)
The overall stock score of 66 reflects a mixed outlook. The company's strong valuation with a low P/E ratio and high dividend yield is a significant positive. However, financial performance is hindered by cash flow issues and high leverage, while technical indicators suggest bearish momentum. Addressing cash flow challenges and improving market sentiment could enhance the stock's attractiveness.

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

China Railway Group Business Overview & Revenue Model

Company DescriptionChina Railway Group Limited, together with its subsidiaries, operates as an integrated construction company in the People's Republic of China, Hong Kong, and Macau. Its Infrastructure Construction segment constructs railways, highways, bridges, tunnels, metropolitan railways, buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works. The company's Survey, Design and Consulting Services segment provides survey, design, consulting, research and development, feasibility study, and compliance certification services to infrastructure construction projects. Its Engineering Equipment and Component Manufacturing segment designs, researches and develops, manufactures, and sells turnouts, bridge steel structures, other railway-related equipment, engineering machinery, and materials. The company's Property Development segment develops, sells, and manages residential and commercial properties. Its Other Businesses segment is involved in mining, financial, service concession arrangements operation, merchandise trading, and other ancillary businesses. China Railway Group Limited was founded in 1950 and is headquartered in Beijing, China.
How the Company Makes MoneyChina Railway Group Limited generates revenue through its diverse operations in several key areas. The primary revenue stream comes from its infrastructure construction services, particularly in railway, highway, and urban transit projects. The company also earns significant income from its engineering, procurement, and construction (EPC) contracts. Beyond construction, CREC is involved in real estate development, which contributes to its earnings through property sales and management. Additionally, the company manufactures and sells engineering equipment, adding another layer to its revenue model. CREC's international projects and strategic partnerships with governments and other corporations further enhance its revenue potential by expanding its market reach and securing large-scale contracts.

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. The company needs to address these issues to ensure sustainable growth and financial stability.
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
EBITDA49.38B48.64B63.91B73.34B67.71B53.83B
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
Neutral
Last Price3.84
Price Trends
50DMA
3.94
Negative
100DMA
3.66
Positive
200DMA
3.62
Positive
Market Momentum
MACD
-0.04
Positive
RSI
42.25
Neutral
STOCH
39.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0390, the sentiment is Neutral. The current price of 3.84 is below the 20-day moving average (MA) of 3.97, below the 50-day MA of 3.94, and above the 200-day MA of 3.62, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.25 is Neutral, neither overbought nor oversold. The STOCH value of 39.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
66
Neutral
HK$141.96B3.727.91%5.07%-7.46%-21.80%
63
Neutral
$10.70B15.267.37%2.02%2.87%-14.59%
$7.18B3.6713.70%8.98%
€7.77B5.048.26%
€8.16B7.075.76%
€3.40B10.168.27%
€1.62B35.496.54%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0390
China Railway Group
3.84
0.90
30.48%
CCOHF
China State Construction International Holdings
0.88
-0.54
-38.03%
DE:2E5
China Energy Engineering Corp. Ltd. Class H
0.13
0.05
62.50%
DE:6MT
Metallurgical Corporation of China Ltd. Class H
0.23
0.11
91.67%
DE:1NS
SINOPEC Engineering (Group) Co., Ltd. Class H
0.74
0.21
39.62%
DE:4AI
China Aluminum International Engineering Corporation Limited Class H
0.26
0.08
44.44%

China Railway Group Corporate Events

China Railway Group Reports Mixed Q2 2025 Performance
Jul 17, 2025

In the second quarter of 2025, China Railway Group Limited reported a decline in new contracts across several business segments, with engineering construction and equipment manufacturing experiencing decreases of 5.3% and 20.7% respectively. However, the featured property segment saw a significant increase of 38.5%, indicating a potential shift in market focus or strategy. This mixed performance may impact the company’s operational strategies and stakeholder interests moving forward.

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.

China Railway Group Secures Major Contract for International Railway Project
Jun 30, 2025

China Railway Group Limited announced that its subsidiaries have secured a significant contract for the civil engineering construction of three sections of the China-Kyrgyzstan-Uzbekistan Railway within the Kyrgyz Republic, with a total contract value of approximately RMB5.343 billion. This project is a key component of the Belt and Road Initiative, underscoring China Railway’s strategic role in international infrastructure development and enhancing its positioning in the global market.

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.

China Railway Group Announces 2024 Final Dividend and Withholding Tax Details
Jun 25, 2025

China Railway Group Limited has announced a cash dividend of RMB 0.178 per share for the financial year ending December 31, 2024, with the payment to be made in HKD at an exchange rate of RMB 1 to HKD 1.0941. The announcement includes details on withholding tax rates applicable to various shareholder categories, impacting both resident and non-resident investors, which could influence investor decisions and the company’s market dynamics.

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.

China Railway Group Announces 2024 Final Dividend Payment Details
Jun 25, 2025

China Railway Group Limited has announced the details regarding the payment of its 2024 final dividend, set at RMB0.178 per share, which will be distributed in Hong Kong dollars to shareholders listed on the H shares register as of July 17, 2025. The company will withhold and pay a 10% enterprise income tax for non-resident enterprise shareholders, aligning with Chinese tax regulations, impacting the net dividend received by these shareholders.

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.

China Railway Group Reports Successful 2024 AGM and 2025 Share Class Meetings
Jun 20, 2025

China Railway Group Limited announced the results of its 2024 Annual General Meeting and the 2025 first A and H Share Class Meetings, which were held on June 20, 2025. The meetings, conducted both on-site and online, saw all proposed resolutions passed without opposition, reflecting strong shareholder support. The successful convening of these meetings underscores the company’s robust governance structure and shareholder engagement, potentially strengthening its market position and stakeholder confidence.

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.

China Railway Group Announces Board of Directors
Jun 20, 2025

China Railway Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement reflects the company’s commitment to strong governance and strategic oversight, which is crucial for maintaining its leadership position in the infrastructure sector and ensuring continued growth and stability.

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.

China Railway Group to Repurchase and Cancel Restricted Shares
Jun 9, 2025

China Railway Group Limited has announced the repurchase and cancellation of 856,199 restricted shares under its 2021 Restricted Share Incentive Scheme. This action follows the disqualification of five participants due to various reasons, including incompetence and legal violations. The repurchase will slightly reduce the total number of shares, but the company’s shareholding structure remains largely unchanged, maintaining its market position and adhering to regulatory compliance.

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.

China Railway Group Announces 2024 AGM and Director Appointment
Jun 5, 2025

China Railway Group Limited has announced a supplemental notice for its 2024 Annual General Meeting, scheduled for June 20, 2025, in Beijing. The meeting will address the appointment of Mr. Fang Xiaobing as a non-executive director, a move that could influence the company’s governance and strategic direction. Shareholders are required to follow specific procedures to attend the meeting, highlighting the company’s commitment to structured corporate governance.

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.

China Railway Group Announces 2024 AGM and Strategic Resolutions
May 15, 2025

China Railway Group Limited has announced its 2024 Annual General Meeting, scheduled for June 20, 2025, in Beijing. The meeting will cover several key resolutions, including the approval of financial statements, profit distribution plans, and the re-appointment of auditors. Additionally, amendments to company regulations and a proposal for share repurchase are on the agenda, indicating strategic adjustments aimed at enhancing governance and financial management.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$5.00 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 Plans Strategic Share Repurchase
May 15, 2025

China Railway Group Limited has announced a meeting for its H share class shareholders to consider a special resolution regarding the repurchase of certain A shares through centralized bidding. This move is part of the company’s strategic financial management to optimize its capital structure, potentially impacting shareholder value and market perception positively.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$5.00 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: Sep 05, 2025