China Railway Construction (1186) AI Stock Analysis

• Market Cap: HK$109.76B
• Dividend Yield: 5.92%
• Average Volume (3M): 5.16M
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.81
• Revenue Growth: -5.10%
• EPS Growth: 0.34%
• Country: HK
• Employees: 264,045
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 2,076,296,000
• 10 Day Avg. Volume: 4,977,168
• 30 Day Avg. Volume: 5,162,726
• PEG Ratio: -0.21
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.07
• P/FCF Ratio: -1.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 12.44
• Revenue Forecast (FY): HK$8.29T

No summary available

China Railway Construction Business Overview & Revenue Model

Company Description

China Railway Construction Corporation Limited (CRCC) is a leading global construction and engineering firm based in China, primarily engaged in the design, construction, and management of railway infrastructure. The company operates in various sectors, including railways, highways, urban transit, and civil engineering, offering a wide range of services such as project management, consulting, and construction of large-scale transportation networks. CRCC also invests in infrastructure projects and engages in real estate development, leveraging its extensive expertise in the construction industry.

How the Company Makes Money

CRCC generates revenue primarily through its construction contracts, which encompass a variety of infrastructure projects, including railways, highways, and urban transit systems, both domestically and internationally. The company earns money by bidding on and winning contracts from government agencies and private entities for construction services. Key revenue streams include income from construction projects, design and consultancy fees, and investments in infrastructure projects. Additionally, CRCC benefits from joint ventures and partnerships with other firms, both in China and overseas, which enhance its capabilities and market reach. The company's strong relationship with the Chinese government also plays a crucial role in securing funding and contracts for major infrastructure initiatives. Furthermore, CRCC has diversified its revenue through real estate development, providing additional streams of income through property sales and leasing.

China Railway Construction Financial Statement Overview

Summary

China Railway Construction faces challenges with declining revenue growth and profitability margins, coupled with increased leverage and negative cash flows. While the company maintains stable gross profit margins, the rise in debt levels and negative cash flow trends highlight potential financial risks.

Income Statement

The company shows a stable gross profit margin around 10%, indicating consistent cost management. However, the net profit margin has slightly decreased to 2.08% in 2024 from 2.29% in 2023, reflecting pressure on profitability. Revenue growth has turned negative at -2.06% in 2024, a concern compared to previous positive growth rates, suggesting challenges in maintaining sales momentum. EBIT and EBITDA margins are relatively stable, but the decline in EBIT margin from 4.06% to 3.94% indicates reduced operational efficiency.

Balance Sheet

The debt-to-equity ratio increased to 1.29 in 2024 from 0.91 in 2023, indicating higher leverage and potential risk if interest rates rise. Return on equity has decreased to 6.77% from 8.42%, suggesting reduced profitability for shareholders. The equity ratio remains stable, reflecting a balanced asset structure. Overall, the balance sheet shows increased financial risk due to higher debt levels.

Cash Flow

The company experienced a significant decline in operating cash flow, turning negative in 2024, which raises concerns about liquidity management. Free cash flow also remains negative, although it improved slightly. The free cash flow to net income ratio is high at 2.21, indicating that cash flow generation is not aligned with net income, which could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04T	1.07T	1.14T	1.10T	1.02T	910.32B
Gross Profit	105.76B	109.57B	116.79B	110.57B	97.88B	84.34B
EBITDA	41.20B	65.74B	67.59B	64.21B	59.25B	54.46B
Net Income	21.01B	22.22B	26.10B	26.68B	24.69B	22.39B
Balance Sheet
Total Assets	2.01T	1.86T	1.66T	1.52T	1.35T	1.24T
Cash, Cash Equivalents and Short-Term Investments	182.04B	187.24B	168.59B	159.39B	127.28B	188.58B
Total Debt	530.13B	424.38B	282.57B	260.86B	232.23B	218.26B
Total Liabilities	1.58T	1.44T	1.25T	1.14T	1.01T	929.15B
Stockholders Equity	341.14B	328.25B	309.84B	290.48B	268.79B	254.30B
Cash Flow
Free Cash Flow	-62.31B	-69.37B	-14.51B	25.87B	-40.18B	8.72B
Operating Cash Flow	-79.46B	-31.42B	20.41B	56.13B	-7.30B	40.11B
Investing Cash Flow	-53.05B	-48.04B	-55.91B	-55.65B	-61.07B	-50.30B
Financing Cash Flow	100.91B	94.76B	44.59B	33.89B	10.60B	38.24B

China Railway Construction Technical Analysis

• Last Price: ―

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2386	78 Outperform	€32.82B	12.03	8.27%	5.33%	11.89%	8.49%
3311	67 Neutral	HK$51.18B	5.20	13.70%	6.45%	-5.14%	-4.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1618	62 Neutral	HK$73.47B	11.78	3.80%	3.26%	-18.36%	-47.29%
3996	56 Neutral	€69.00B	5.59	7.78%	3.73%	11.49%	-7.01%
2068	45 Neutral	€15.76B	75.78	3.35%	―	-1.75%	―

China Railway Construction Corporate Events

China Railway Construction Secures Major Railway Projects

China Railway Construction Corporation Limited has secured significant contracts for two major railway projects in China. The company, through its consortiums, will undertake pre-construction work on the Hefei–Chizhou Railway and the Wenzhou-Fuzhou High-speed Railway, with project values exceeding RMB 1.5 billion each. These projects are expected to enhance the company’s operational capacity and strengthen its position in the infrastructure sector.

China Railway Construction Acquires Minority Equity Interests in Subsidiaries for RMB11 Billion

China Railway Construction announced a significant acquisition involving the purchase of minority equity interests in several subsidiaries from eight investors, including Taiping Life and BOC Asset, for a total of RMB11 billion. This transaction will result in the target companies becoming wholly-owned subsidiaries of China Railway Construction, enhancing its control over these entities and potentially strengthening its market position. The acquisition is classified as a discloseable and connected transaction under Hong Kong Listing Rules, requiring reporting and announcement but exempt from shareholder approval.

China Railway Construction Reports Strong Q3 2025 Financial Results

China Railway Construction has released its unaudited financial results for the third quarter of 2025, reporting a revenue of RMB728.4 billion and a net profit attributable to shareholders of RMB14.8 billion. This financial performance reflects the company’s robust operations and solid market positioning, indicating continued growth and stability in its core infrastructure development activities.

China Railway Construction Signs New Leasing Agreement with CRCCG

China Railway Construction has announced the signing of a New Property Leasing Framework Agreement with its controlling shareholder, CRCCG, effective from January 1, 2026, to December 31, 2026. This agreement, which involves an estimated expenditure cap of RMB200 million, aims to regulate ongoing connected transactions, ensuring compliance with Hong Kong Listing Rules. The transactions are subject to reporting and annual review requirements but are exempt from independent shareholders’ approval, reflecting a strategic move to maintain operational continuity and regulatory adherence.

China Railway Construction Reports Q3 2025 Operating Results

China Railway Construction Corporation Limited announced its major operating information for the third quarter of 2025, highlighting a 3.08% increase in the total value of newly signed contracts compared to the same period last year. Notable growth was seen in environmental protection and emerging industries, while real estate development operations experienced a decline in sales contract value by 11.53%.

China Railway Construction to Release Q3 2025 Results and Host Investor Presentation

China Railway Construction Corporation Limited announced that it will release its third quarterly report for 2025 on October 31, 2025. To provide investors with a comprehensive understanding of its financial and operational performance, the company will hold an online presentation on November 3, 2025. This initiative aims to enhance transparency and engage with stakeholders by addressing common investor concerns and discussing key financial indicators.

China Railway Construction Schedules Board Meeting for Q3 Financial Review

China Railway Construction Corporation Limited has announced a board meeting scheduled for October 30, 2025, to review and approve the unaudited financial results for the third quarter ending September 30, 2025. This meeting is crucial as it will provide insights into the company’s financial performance and strategic direction, impacting stakeholders and potentially influencing market perceptions.

China Railway Construction Secures Major Infrastructure Projects

China Railway Construction Corporation Limited announced that it has secured major projects with a combined value exceeding RMB 1.5 billion. These projects include the construction of the Nanjing Shangyuanmen River-Crossing Passage and related infrastructure, which are significant for the company’s growth and positioning in the infrastructure sector.