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China Railway Construction

Market Cap

CN¥89.0b

Last Updated

2021/05/07 09:54 UTC

Data Sources

Company Financials +

Executive Summary

China Railway Construction Corporation Limited, together with its subsidiaries, operates as an integrated construction company in Mainland China and internationally. More Details


Snowflake Analysis

Very undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has China Railway Construction's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 601186 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 601186's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

601186

0.8%

CN Construction

-2.2%

CN Market


1 Year Return

-20.3%

601186

-4.8%

CN Construction

22.2%

CN Market

Return vs Industry: 601186 underperformed the CN Construction industry which returned -5.2% over the past year.

Return vs Market: 601186 underperformed the CN Market which returned 25.4% over the past year.


Shareholder returns

601186IndustryMarket
7 Day0.8%0.8%-2.2%
30 Day-4.4%-5.2%-1.3%
90 Day5.6%8.9%-3.6%
1 Year-18.4%-20.3%-2.6%-4.8%24.1%22.2%
3 Year-15.8%-21.2%-21.6%-26.0%25.7%19.7%
5 Year-13.2%-21.0%-9.0%-16.4%35.4%26.4%

Long-Term Price Volatility Vs. Market

How volatile is China Railway Construction's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Railway Construction undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 601186 (CN¥7.78) is trading below our estimate of fair value (CN¥32.54)

Significantly Below Fair Value: 601186 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 601186 is good value based on its PE Ratio (4.7x) compared to the CN Construction industry average (15.7x).

PE vs Market: 601186 is good value based on its PE Ratio (4.7x) compared to the CN market (30.5x).


Price to Earnings Growth Ratio

PEG Ratio: 601186 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 601186 is good value based on its PB Ratio (0.4x) compared to the CN Construction industry average (1.3x).


Future Growth

How is China Railway Construction forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601186's forecast earnings growth (11.4% per year) is above the savings rate (3.3%).

Earnings vs Market: 601186's earnings (11.4% per year) are forecast to grow slower than the CN market (21.1% per year).

High Growth Earnings: 601186's earnings are forecast to grow, but not significantly.

Revenue vs Market: 601186's revenue (10.7% per year) is forecast to grow slower than the CN market (16.9% per year).

High Growth Revenue: 601186's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 601186's Return on Equity is forecast to be low in 3 years time (9.7%).


Past Performance

How has China Railway Construction performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 601186 has high quality earnings.

Growing Profit Margin: 601186's current net profit margins (2.2%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 601186's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: 601186's earnings growth over the past year (24.2%) exceeds its 5-year average (9.5% per year).

Earnings vs Industry: 601186 earnings growth over the past year (24.2%) exceeded the Construction industry 22%.


Return on Equity

High ROE: 601186's Return on Equity (8.8%) is considered low.


Financial Health

How is China Railway Construction's financial position?


Financial Position Analysis

Short Term Liabilities: 601186's short term assets (CN¥881.0B) exceed its short term liabilities (CN¥785.0B).

Long Term Liabilities: 601186's short term assets (CN¥881.0B) exceed its long term liabilities (CN¥175.9B).


Debt to Equity History and Analysis

Debt Level: 601186's debt to equity ratio (75.1%) is considered high.

Reducing Debt: 601186's debt to equity ratio has reduced from 101% to 75.1% over the past 5 years.

Debt Coverage: 601186's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: 601186's interest payments on its debt are well covered by EBIT (20.4x coverage).


Balance Sheet


Dividend

What is China Railway Construction current dividend yield, its reliability and sustainability?

2.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 601186's dividend (2.96%) is higher than the bottom 25% of dividend payers in the CN market (0.46%).

High Dividend: 601186's dividend (2.96%) is in the top 25% of dividend payers in the CN market (1.86%)


Stability and Growth of Payments

Stable Dividend: 601186's dividend payments have been volatile in the past 10 years.

Growing Dividend: 601186's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.9%), 601186's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 601186's dividends in 3 years are forecast to be well covered by earnings (24.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Shangbiao Zhuang (58 yo)

5.42yrs

Tenure

CN¥1,636,000

Compensation

Mr. Zhuang Shangbiao has been the President of China Railway Construction Corporation limited since December 4, 2015 and also serves as its General Manager and Deputy Secretary to the Communist Party Commi...


CEO Compensation Analysis

Compensation vs Market: Shangbiao's total compensation ($USD253.13K) is about average for companies of similar size in the CN market ($USD333.67K).

Compensation vs Earnings: Shangbiao's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 601186's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: 601186's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Railway Construction Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Railway Construction Corporation Limited
  • Ticker: 601186
  • Exchange: SHSE
  • Founded: 2007
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CN¥89.035b
  • Shares outstanding: 11.50b
  • Website: https://www.crcc.cn

Number of Employees


Location

  • China Railway Construction Corporation Limited
  • East, No.40 Fuxing Road
  • Haidian District
  • Beijing
  • 100855
  • China

Listings


Biography

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: Cons...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 09:54
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.