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China Railway Group Class H (HK:0390)
OTHER OTC:0390

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.
Positive Factors
International Expansion
Expanding international projects diversify revenue streams and reduce dependency on domestic markets, enhancing long-term growth potential.
Strong Profitability
Effective cost management and strong profitability indicate operational efficiency, supporting sustainable long-term financial health.
Solid Market Position
Being a leading player in the construction and engineering sector provides competitive advantages and opportunities for large-scale projects.
Negative Factors
High Leverage
High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.
Negative Free Cash Flow
Negative free cash flow suggests challenges in generating cash from operations, which could hinder reinvestment and debt servicing capabilities.
Revenue Decline
A decline in revenue indicates potential market challenges and could affect future profitability if not addressed.

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
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
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
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
Positive
Last Price3.86
Price Trends
50DMA
3.87
Positive
100DMA
3.87
Positive
200DMA
3.67
Positive
Market Momentum
MACD
0.04
Negative
RSI
66.45
Neutral
STOCH
86.79
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 3.86 is above the 20-day moving average (MA) of 3.86, below the 50-day MA of 3.87, and above the 200-day MA of 3.67, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 86.79 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$34.49B12.648.27%5.31%11.89%8.49%
72
Outperform
HK$144.53B3.877.41%7.43%-7.46%-21.80%
67
Neutral
HK$47.43B4.8213.70%6.69%-5.14%-4.05%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
HK$66.67B9.103.80%3.21%-18.36%-47.29%
60
Neutral
HK$68.87B5.447.78%3.90%11.49%-7.01%
44
Neutral
HK$18.41B83.233.35%-1.75%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0390
China Railway Group
4.03
0.69
20.69%
HK:3311
China State Construction International Holdings
8.98
-2.14
-19.28%
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.12
0.24
26.55%
HK:1618
Metallurgical Corporation of China Ltd. Class H
1.84
0.41
28.58%
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
7.85
2.03
34.90%
HK:2068
China Aluminum International Engineering Corporation Limited Class H
2.68
0.91
51.41%

China Railway Group Corporate Events

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 approval at a forthcoming general meeting. Zhao, who holds senior roles within China Railway Engineering Group and has extensive leadership experience across several major state-owned construction entities, will further consolidate management continuity at the group, with his eventual board-level role and remuneration to be finalized following shareholder endorsement, underscoring ongoing alignment of corporate governance with regulatory and party oversight requirements.

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 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 centralized competitive bidding. The company plans to spend between RMB800 million and RMB1.6 billion of self-owned funds and special loans to buy back RMB ordinary shares at no more than RMB8.50 per share for the purpose of reducing registered capital, and as of the latest disclosure has repurchased 28,812,000 shares, representing 0.1167% of its total share capital, at prices between RMB5.42 and RMB5.75 per share for an aggregate consideration of about RMB160 million, signaling active capital management that could enhance per-share metrics and potentially support 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 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 31 December 2025. The second unlocking period, which began on 1 December 2025, applies to one-third of the restricted shares granted under the reserved portion of the scheme, after the expiry of 36 months from the completion of registration on 30 November 2022, and will run until the last trading day of the 48‑month period, paving the way for eligible participants to have a further tranche of their incentive shares unlocked and tradable.

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 Adjusts 2025 Interim Profit Distribution
Dec 4, 2025

China Railway Group Limited announced an adjustment to its total profit distribution amount for the interim period of 2025. The company will maintain a cash dividend of RMB0.82 per 10 shares, but the total distribution amount will be slightly reduced due to the repurchase and cancellation of certain shares. This adjustment reflects the company’s commitment to maintaining its per-share distribution ratio while adapting to changes in its share capital.

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 Advances Share Repurchase Plan
Dec 1, 2025

China Railway Group Limited has announced progress in its share repurchase plan, initially disclosed on April 30, 2025. The company plans to repurchase RMB ordinary shares (A shares) through centralized competitive bidding, with an estimated repurchase amount between RMB800 million and RMB1.6 billion. The purpose of this repurchase is to reduce registered capital, and the company has already repurchased 10,501,500 shares, representing 0.0425% of its total share capital. This strategic move is expected to enhance shareholder value and optimize the company’s capital structure.

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 Completes Share Repurchase and Cancellation
Nov 25, 2025

China Railway Group Limited has completed the repurchase and cancellation of 54,723,290 restricted shares under its 2021 Restricted Share Incentive Scheme. This move affects 677 participants and represents 0.22% of the company’s total share capital, reducing the total number of shares from 24,741,008,919 to 24,686,285,629. The repurchase and cancellation are part of the company’s efforts to manage its shareholding structure effectively, although 63,700 shares remain frozen and will be addressed once unfrozen.

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 to Repurchase and Cancel Restricted Shares
Nov 19, 2025

China Railway Group Limited has announced the repurchase and cancellation of certain restricted shares under its 2021 Restricted Share Incentive Scheme. This decision was made following the company’s failure to meet the performance evaluation indicators set for the third unlocking period in 2024. The company will repurchase and cancel a total of 54,786,990 restricted shares held by 678 participants who did not meet the unlocking conditions, impacting the company’s operations and potentially affecting stakeholders.

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 Announces 2025 Interim Dividend Details
Nov 18, 2025

China Railway Group Limited has announced an interim cash dividend of RMB 0.082 per share for the financial year ending December 31, 2025, with the dividend to be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0962. The announcement includes details on withholding tax rates applicable to different categories of shareholders, with a 10% rate for non-resident enterprises and individuals, and a 20% rate for resident individuals within the PRC. This dividend declaration reflects the company’s financial health and commitment to providing returns to its shareholders, potentially impacting investor sentiment and market positioning.

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 Announces 2025 Interim Dividend Details
Nov 18, 2025

China Railway Group Limited has announced details regarding the payment of its 2025 interim dividend, set at RMB0.082 per share, to be distributed in Hong Kong dollars at an exchange rate determined by the People’s Bank of China. The company will withhold a 10% enterprise income tax for non-resident enterprise shareholders, in compliance with Chinese tax laws, impacting the net dividend received by these shareholders.

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 Advances Share Repurchase Plan
Nov 4, 2025

China Railway Group Limited announced progress on its share repurchase plan, initially disclosed on April 30, 2025. The company plans to repurchase RMB ordinary shares (A shares) through centralized competitive bidding, with an estimated repurchase amount between RMB800 million and RMB1.6 billion. The purpose of the repurchase is to reduce registered capital, and as of the announcement, 6,998,600 shares have been repurchased, representing 0.0283% of the total share capital, at a cumulative cost of RMB39,999,328. This move is expected to impact the company’s capital structure and potentially enhance 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 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.

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