China Railway Construction Corporation Class H (HK:1186)
:1186
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China Railway Construction
(1186)
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Rating:55Neutral
Price Target:
HK$5.50
Action:ReiteratedDate:04/02/26
The score is held back primarily by weaker financial performance—especially deteriorating cash conversion with recurring negative free cash flow and rising leverage. Technicals also remain soft with the stock trading below key moving averages and negative MACD. These risks are partially offset by very attractive valuation (low P/E) and a high dividend yield.
Positive Factors
Diversified infrastructure portfolio
A broad, multi-segment project mix across rail, highways, municipal works and housing reduces client and sector concentration risk. This diversification supports steady tender opportunities and backlog renewal from government and SOE sponsors, underpinning medium-term revenue stability.
Negative Factors
Rising leverage
Material increase in leverage reduces financial flexibility and raises refinancing and interest expense risk. Higher debt constrains capacity to fund working capital swings or new bids internally and increases vulnerability to weaker cash flow or rising rates over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified infrastructure portfolio
A broad, multi-segment project mix across rail, highways, municipal works and housing reduces client and sector concentration risk. This diversification supports steady tender opportunities and backlog renewal from government and SOE sponsors, underpinning medium-term revenue stability.
Read all positive factors
China Railway Construction (1186) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$104.14B
Dividend Yield5.92%
Average Volume (3M)5.78M
Price to Earnings (P/E)4.1
Beta (1Y)0.78
Revenue Growth-5.10%
EPS Growth0.34%
CountryHK
Employees264,045
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.29
Shares Outstanding2,076,296,000
10 Day Avg. Volume6,962,929
30 Day Avg. Volume5,777,466
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)0.22
Price to Sales (P/S)0.07
P/FCF Ratio-1.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.30Price Target Upside― Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.42
Revenue Forecast (FY)HK$1.08T
China Railway Construction Business Overview & Revenue Model
Company Description
China Railway Construction Corporation Limited, together with its subsidiaries, operates as an integrated construction company in Mainland China and internationally. It operates through five segments: Construction Operations; Survey, Design and Co...
How the Company Makes Money
The company primarily makes money by undertaking engineering and construction contracts for infrastructure and building projects. Revenue is recognized from providing construction and related services under contracts (often large, multi-year proje...
China Railway Construction Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
48
Neutral
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.03T | 1.07T | 1.14T | 1.10T | 1.02T |
| Gross Profit | 100.12B | 109.57B | 116.79B | 110.57B | 97.88B |
| EBITDA | 67.55B | 65.74B | 67.59B | 64.21B | 59.25B |
| Net Income | 18.36B | 22.22B | 26.10B | 26.68B | 24.69B |
Balance Sheet | |||||
| Total Assets | 2.08T | 1.86T | 1.66T | 1.52T | 1.35T |
| Cash, Cash Equivalents and Short-Term Investments | 192.93B | 187.24B | 168.59B | 159.39B | 127.28B |
| Total Debt | 550.08B | 424.38B | 282.57B | 260.86B | 232.23B |
| Total Liabilities | 1.66T | 1.44T | 1.25T | 1.14T | 1.01T |
| Stockholders Equity | 340.29B | 328.25B | 309.84B | 290.48B | 268.79B |
Cash Flow | |||||
| Free Cash Flow | -44.64B | -69.37B | -14.51B | 25.87B | -40.18B |
| Operating Cash Flow | 2.96B | -31.42B | 20.41B | 56.13B | -7.30B |
| Investing Cash Flow | -56.96B | -48.04B | -55.91B | -55.65B | -61.07B |
| Financing Cash Flow | 59.83B | 94.76B | 44.59B | 33.89B | 10.60B |
China Railway Construction Technical Analysis
―
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1186, the sentiment is undefined. The current price of undefined is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for HK:1186.
China Railway Construction 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$28.47B | 17.27 | 5.62% | 5.31% | 11.89% | 8.49% | |
62 Neutral | HK$47.17B | 4.99 | 11.89% | 6.69% | -5.14% | -4.05% | |
55 Neutral | HK$104.14B | 4.09 | 5.70% | 5.92% | -5.10% | 0.34% | |
48 Neutral | HK$84.33B | 6.98 | 7.17% | 3.90% | 11.49% | -7.01% | |
44 Neutral | HK$66.58B | 5.71 | 0.95% | 3.21% | -18.36% | -47.29% | |
44 Neutral | HK$19.52B | 100.11 | 2.33% | ― | -1.75% | ― |
* Industrials Sector Average
HK:1186
China Railway Construction
5.42
0.78
16.86%
HK:3311
China State Construction International Holdings
8.93
-1.53
-14.65%
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.33
0.37
38.11%
HK:1618
Metallurgical Corporation of China Ltd. Class H
1.65
0.22
15.30%
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
6.48
1.73
36.33%
HK:2068
China Aluminum International Engineering Corporation Limited Class H
2.71
0.97
55.75%
China Railway Construction Corporate Events
China Railway Construction Proposes RMB 0.3 Final Dividend for 2025 With August 2026 Payout
Mar 30, 2026
China Railway Construction Corporation Limited has proposed a final ordinary dividend of RMB 0.3 per share for the financial year ended 31 December 2025, with payment scheduled for 31 August 2026, subject to shareholder approval. The company has o...
China Railway Construction Confirms 2025 Results and Sets RMB4.07 Billion Dividend
Mar 30, 2026
China Railway Construction reported its audited 2025 annual results, confirming that its financial statements received a standard unqualified opinion from Ernst Young Hua Ming and comply with both Shanghai and Hong Kong listing disclosure rules. ...
China Railway Construction Sets Joint 2025 Results and Dividend Briefing
Mar 23, 2026
China Railway Construction Corporation Limited has announced that it will publish its 2025 annual report on 31 March 2026 and will hold a joint online presentation on 1 April 2026 with subsidiary China Railway Construction Heavy Industry Corporati...
China Railway Construction Reports 2026 EGM Voting Results and Board Changes
Mar 20, 2026
China Railway Construction Corporation Limited reported the voting results of its first extraordinary general meeting of 2026, held in Beijing on 20 March, where both on-site and internet voting were used via the Shanghai Stock Exchange system for...
China Railway Construction Updates Board and Committee Structure
Mar 20, 2026
China Railway Construction Corporation Limited has updated the composition of its board of directors, confirming a structure that includes executive, non-executive, independent non-executive and employee directors, with Dai Hegen serving as chairm...
China Railway Construction Sets March 2026 Board Meeting to Approve 2025 Results and Consider Dividend
Mar 17, 2026
China Railway Construction Corporation Limited has scheduled a board meeting for 30 March 2026 in Beijing to review and approve the audited annual results for the year ended 31 December 2025. The board will also consider recommending a final divid...
China Railway Construction Calls March 2026 EGM to Add Two Executive Directors
Feb 27, 2026
China Railway Construction Corporation Limited has called its first extraordinary general meeting of 2026 for 20 March in Beijing, where shareholders will vote on proposals to appoint two new executive directors, Pei Minshan and Chen Zhiming. The ...
China Railway Construction Names President Pei Minshan as Executive Director Candidate
Feb 11, 2026
China Railway Construction Corporation Limited has nominated current president and deputy party secretary Pei Minshan as a candidate for executive director, with his board term to align with the sixth session and become effective upon shareholder ...
China Railway Construction Wins Multi-Billion Yuan Railway Contracts Across China
Feb 10, 2026
China Railway Construction Corporation Limited has announced that several of its subsidiaries have secured major new railway-related construction contracts in China, each with a single contract value exceeding RMB 1.5 billion. The wins include a s...
China Railway Construction Posts Modest Order Growth in 2025 as Emerging Businesses Offset Property Weakness
Jan 29, 2026
China Railway Construction reported that its total value of newly signed contracts reached RMB 3.076 trillion in 2025, up 1.30% year on year, with fourth-quarter contract value at RMB 1.558 trillion. Core construction operations remained the main ...
China Railway Construction Proposes Appointment of Chen Zhiming as Executive Director
Jan 21, 2026
China Railway Construction Corporation Limited has proposed the appointment of Mr. Chen Zhiming as an executive director, subject to shareholder approval at an upcoming general meeting, with his term aligned to the current sixth session of the boa...
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.