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China Railway Group Limited Class H (HK:0390)
:0390

China Railway Group (0390) AI Stock Analysis

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HK

China Railway Group

(OTC:0390)

Rating:73Outperform
Price Target:
HK$4.00
▲(6.67%Upside)
China Railway Group's score is driven by strong valuation metrics, with a low P/E ratio and high dividend yield making the stock attractive. While technical indicators suggest stable market momentum, financial performance is mixed, with strong profitability but concerns over negative free cash flow and high leverage.

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

China Railway Group Business Overview & Revenue Model

Company DescriptionChina Railway Group Limited (0390), also known as CREC, is a leading construction and engineering company headquartered in Beijing, China. The company operates across various sectors, including infrastructure construction, industrial equipment manufacturing, real estate development, and resources exploration. With a strong focus on the development of railways, highways, and urban transit systems, CREC provides comprehensive construction services and is one of the largest and most influential construction companies in the world.
How the Company Makes MoneyChina Railway Group Limited generates revenue primarily through its construction and engineering projects, which include the development of railways, highways, and urban transit systems. The company also earns income from its industrial equipment manufacturing, providing machinery and tools essential for construction projects. Real estate development contributes to its earnings through the construction and sale of residential and commercial properties. Additionally, CREC is involved in resources exploration, further diversifying its revenue streams. The company benefits from significant contracts and partnerships with governmental bodies and other large enterprises, particularly within China, where infrastructure development is a key area of focus.

China Railway Group Financial Statement Overview

Summary
China Railway Group shows strong profitability and effective cost management with healthy EBIT and EBITDA margins. However, the company faces revenue volatility, high leverage, and concerning negative free cash flow, which could affect 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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.14T1.16T1.26T1.15T1.07T974.75B
Gross Profit
114.52B116.34B129.98B115.57B109.57B99.17B
EBIT
36.49B38.45B46.28B62.66B57.56B33.58B
EBITDA
52.52B48.64B63.91B73.34B67.71B53.83B
Net Income Common Stockholders
26.43B27.89B33.48B31.27B27.62B25.19B
Balance SheetCash, Cash Equivalents and Short-Term Investments
163.60B262.09B243.39B248.76B186.07B179.83B
Total Assets
1.06T2.26T1.83T1.61T1.36T1.20T
Total Debt
221.78B467.10B380.07B390.36B295.58B241.29B
Net Debt
63.62B217.03B145.56B151.78B116.67B66.53B
Total Liabilities
810.71B1.75T1.37T1.19T1.00T886.93B
Stockholders Equity
221.46B354.71B332.53B301.23B275.27B255.34B
Cash FlowFree Cash Flow
-37.77B-29.95B-20.08B-18.76B-42.90B-12.30B
Operating Cash Flow
-1.27B28.05B38.36B43.55B13.07B30.99B
Investing Cash Flow
-80.44B-82.29B-74.64B-84.39B-77.46B-63.14B
Financing Cash Flow
50.01B57.39B27.13B96.36B67.37B40.20B

China Railway Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.75
Price Trends
50DMA
3.48
Positive
100DMA
3.66
Positive
200DMA
3.72
Positive
Market Momentum
MACD
0.06
Negative
RSI
67.08
Neutral
STOCH
85.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0390, the sentiment is Positive. The current price of 3.75 is above the 20-day moving average (MA) of 3.60, above the 50-day MA of 3.48, and above the 200-day MA of 3.72, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 67.08 is Neutral, neither overbought nor oversold. The STOCH value of 85.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0390.

China Railway Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$48.81B11.399.62%2.52%11.54%16.09%
73
Outperform
$140.44B3.168.83%6.09%-9.80%-18.36%
66
Neutral
HK$15.17B3.708.08%4.98%0.11%0.93%
66
Neutral
$4.50B12.265.40%3.65%4.17%-12.02%
65
Neutral
$108.17B41.231.91%2.20%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0390
China Railway Group
3.75
-0.18
-4.65%
HK:6199
Bank of Guizhou Co. Ltd. Class H
1.04
-0.44
-29.73%
HK:2727
Shanghai Electric Group Company
2.89
1.36
88.89%
HK:3898
Zhuzhou CRRC Times Electric Co
32.95
3.01
10.04%

China Railway Group Corporate Events

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.

China Railway Group Wins Major Bid for Kyrgyzstan Railway Project
Apr 29, 2025

China Railway Group Limited announced that its subsidiary, China Railway No. 5 Engineering Group Co., Ltd., has won a significant bid for the construction of a section of the China-Kyrgyzstan-Uzbekistan Railway within Kyrgyzstan. This project, valued at approximately RMB1.516 billion, is a major milestone in the Belt and Road Initiative, highlighting China Railway’s commitment to expanding its high-quality overseas operations and strengthening its position in international infrastructure development.

China Railway Group Reports Decline in Q1 2025 Financial Results
Apr 29, 2025

China Railway Group Limited announced its unaudited financial results for the first quarter of 2025, revealing a decline in revenue and net profit compared to the same period last year. Revenue decreased by 6.21% to RMB 248.6 billion, and net profit attributable to shareholders fell by 19.46% to RMB 6 billion. Despite these declines, the company’s total assets increased slightly by 0.70%, and owner’s equity rose by 2.58%. These results indicate challenges in the company’s performance, potentially impacting its market position and stakeholder confidence.

China Railway Group Proposes Key Amendments to Corporate Governance Structure
Apr 29, 2025

China Railway Group Limited has announced proposed amendments to its Articles of Association, including the abolition of its supervisory committee. The changes aim to align with new regulatory requirements and enhance corporate governance by transferring the supervisory committee’s responsibilities to the audit and risk management committee. These amendments are expected to strengthen shareholder rights, adjust the board structure, and incorporate new provisions for electronic voting and hybrid shareholder meetings, reflecting the company’s commitment to modernizing its corporate framework.

China Railway Group Announces A Share Repurchase Plan
Apr 29, 2025

China Railway Group Limited has announced a plan to repurchase certain A shares of the company through centralized bidding on the Shanghai Stock Exchange. The repurchase aims to reduce the registered capital, with a budget of RMB800 million to RMB1,600 million, using self-owned funds and a special loan. The repurchase period is set for 12 months, and the company assures that significant shareholders have no plans to decrease their holdings in the near future, maintaining stability in shareholder structure.

China Railway Group Reports Mixed Q1 2025 Performance
Apr 25, 2025

In the first quarter of 2025, China Railway Group Limited reported a decrease in the value of new contracts across several business segments, with engineering construction seeing a 10.4% decline and equipment manufacturing experiencing an 18.7% drop. Despite these declines, the featured property segment showed a slight increase of 2.8%, indicating a potential area of growth for the company amidst broader challenges.

China Railway Group Schedules Board Meeting for Q1 Results
Apr 16, 2025

China Railway Group Limited has announced that its board of directors will convene on April 29, 2025, to approve the company’s quarterly results for the first quarter ending March 31, 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market position and investor confidence.

China Railway Group Secures Major Railway Project Bids
Apr 7, 2025

China Railway Group Limited has announced winning significant bids for major railway projects, including sections of the Yichang to Fuling high-speed railway and the Nantong to Ningbo high-speed railway. These projects, with substantial bid amounts and lengthy project durations, are expected to enhance the company’s operational capabilities and strengthen its position in the railway construction industry.

China Railway Group Announces 2024 Cash Dividend
Mar 31, 2025

China Railway Group Limited has announced a cash dividend of RMB 0.178 per share for the financial year ending December 31, 2024. This update reflects the company’s financial performance and commitment to returning value to shareholders, although specific dates for shareholder approval and payment are yet to be announced.

China Railway Group Declares Final Dividend for 2023
Mar 31, 2025

China Railway Group Limited has announced a final ordinary cash dividend of RMB 0.178 per share for the financial year ending December 31, 2023. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders. The specifics regarding the approval date, payment date, and other related details are yet to be announced, indicating ongoing procedural steps before the dividend distribution. This move is likely to impact the company’s financial operations and shareholder relations positively.

China Railway Group Reports Decline in 2024 Financial Results
Mar 28, 2025

China Railway Group Limited announced its audited consolidated results for the year ending December 31, 2024, reporting a decline in revenue and profit across various segments. The company’s total revenue decreased by 8.2% compared to the previous year, with significant drops in infrastructure construction and other business revenues. This financial performance reflects challenges in the market, potentially impacting the company’s operations and stakeholder interests.

China Railway Group Advances in Share Incentive Scheme
Mar 25, 2025

China Railway Group Limited announced the fulfillment of unlocking conditions for the second unlocking period under its 2021 Restricted Share Incentive Scheme. This development marks a significant milestone in the company’s incentive scheme, allowing for the unlocking of one-third of the restricted shares initially granted. The move is expected to impact the company’s operations by enhancing employee motivation and aligning their interests with the company’s long-term goals.

China Railway Group Schedules Board Meeting to Approve Annual Results and Dividend
Mar 18, 2025

China Railway Group Limited has announced a board meeting scheduled for March 28, 2025, to approve the annual results for the financial year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is a key event for stakeholders as it will provide insights into the company’s financial performance and potential returns on investment.

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.