China Railway Construction Corporation Class H (HK:1186)
:1186
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China Railway Construction
(1186)
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Rating:53Neutral
Price Target:
HK$5.50
Action:Reiterated
Date:05/01/26
The score is held back primarily by weak cash generation and sharply rising leverage, alongside modestly declining revenue and thin margins. Technicals also remain bearish with the stock below key moving averages. These risks are partly offset by an inexpensive valuation (low P/E) and an attractive dividend yield.
Positive Factors
Scale & infrastructure expertise
The company’s vast scale and end-to-end infrastructure capabilities support competitive advantages in bidding, project execution, and resource deployment. Over months this scale drives stable contract win probability, supply-chain leverage and the ability to mobilize large workforces for multi-year projects.
Negative Factors
Sharply rising leverage
A near threefold debt-to-equity increase materially reduces financial flexibility and elevates refinancing and interest-cost risk. Overcoming higher leverage requires sustained cash generation or asset disposal, constraining strategic options and increasing vulnerability to funding stress over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & infrastructure expertise
The company’s vast scale and end-to-end infrastructure capabilities support competitive advantages in bidding, project execution, and resource deployment. Over months this scale drives stable contract win probability, supply-chain leverage and the ability to mobilize large workforces for multi-year projects.
Read all positive factors
China Railway Construction (1186) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$96.28B
Dividend Yield5.92%
Average Volume (3M)5.78M
Price to Earnings (P/E)3.6
Beta (1Y)0.82
Revenue Growth-2.50%
EPS Growth-10.45%
CountryHK
Employees264,045
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.23
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)1.32
Revenue Forecast (FY)HK$1.04T
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 contracting, constructing, and delivering large-scale infrastructure projects for clients (typically government bodies, state-owned entities, and project companies). Revenue is generally recognized from enginee...
China Railway Construction Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
45
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00T | 1.03T | 1.07T | 1.14T | 1.10T | 1.02T |
| Gross Profit | 98.86B | 100.12B | 109.57B | 116.79B | 110.57B | 97.88B |
| EBITDA | 38.28B | 67.55B | 65.74B | 67.59B | 64.21B | 59.25B |
| Net Income | 18.74B | 18.36B | 22.22B | 26.10B | 26.68B | 24.69B |
Balance Sheet | ||||||
| Total Assets | 2.14T | 2.08T | 1.86T | 1.66T | 1.52T | 1.35T |
| Cash, Cash Equivalents and Short-Term Investments | 178.65B | 192.93B | 187.24B | 168.59B | 159.39B | 127.28B |
| Total Debt | 805.99B | 550.08B | 424.38B | 282.57B | 260.86B | 232.23B |
| Total Liabilities | 1.77T | 1.66T | 1.44T | 1.25T | 1.14T | 1.01T |
| Stockholders Equity | 277.00B | 340.29B | 328.25B | 309.84B | 290.48B | 268.79B |
Cash Flow | ||||||
| Free Cash Flow | -71.33B | -44.64B | -69.37B | -14.51B | 25.87B | -40.18B |
| Operating Cash Flow | -19.41B | 2.96B | -31.42B | 20.41B | 56.13B | -7.30B |
| Investing Cash Flow | -58.37B | -56.96B | -48.04B | -55.91B | -55.65B | -61.07B |
| Financing Cash Flow | 94.89B | 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$47.70B | 3.19 | 11.89% | 6.69% | -5.48% | -4.24% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$25.35B | 16.82 | 5.64% | 5.31% | 9.27% | -27.28% | |
57 Neutral | HK$85.57B | 8.64 | 4.96% | 3.90% | 5.40% | -33.06% | |
57 Neutral | HK$62.89B | 4.48 | 0.95% | 3.21% | -17.50% | -75.50% | |
53 Neutral | HK$96.28B | 3.57 | 5.70% | 5.92% | -2.50% | -10.45% | |
52 Neutral | HK$18.11B | 22.20 | 6.83% | ― | -3.56% | 49.92% |
* Industrials Sector Average
HK:1186
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4.93
0.06
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8.99
-1.42
-13.61%
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1.26
0.29
29.50%
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1.51
0.05
3.42%
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24.60%
China Railway Construction Corporate Events
China Railway Construction Sees Sharp Fall in New Contracts in Q1 2026
Apr 29, 2026
China Railway Construction Corporation Limited reported its major operating data for the first quarter of 2026, highlighting activity across construction, environmental protection, planning and design, manufacturing, real estate, logistics, indust...
China Railway Construction Posts Strong Q1 2026 Revenue and Profit in Unaudited Results
Apr 29, 2026
China Railway Construction has reported its unaudited results for the first quarter ended 31 March 2026, prepared under PRC Generally Accepted Accounting Principles and in line with Chinese securities disclosure rules. The company generated revenu...
China Railway Construction Sets April Board Meeting to Review Q1 2026 Results
Apr 16, 2026
China Railway Construction Corporation Limited has scheduled a board meeting at its Beijing headquarters on 29 April 2026 to review and approve the unaudited financial results for the group’s first quarter ended 31 March 2026. The planned di...
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...
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.