China Railway Construction Corporation Limited

SHSE:601186 Stock Report

Market Cap: CN¥120.5b

China Railway Construction Valuation

Is 601186 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 601186 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601186 (CN¥9.19) is trading above our estimate of fair value (CN¥5.21)

Significantly Below Fair Value: 601186 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601186?

Key metric: As 601186 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 601186. This is calculated by dividing 601186's market cap by their current earnings.
What is 601186's PE Ratio?
PE Ratio6.3x
EarningsCN¥19.82b
Market CapCN¥120.51b

Price to Earnings Ratio vs Peers

How does 601186's PE Ratio compare to its peers?

The above table shows the PE ratio for 601186 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.2x
601669 Power Construction Corporation of China
7.8x14.0%CN¥99.4b
601390 China Railway Group
5.6x11.9%CN¥152.2b
600039 Sichuan Road & Bridge GroupLtd
10.5x17.6%CN¥64.7b
601668 China State Construction Engineering
4.9x6.8%CN¥254.2b
601186 China Railway Construction
6.3x8.1%CN¥120.5b

Price-To-Earnings vs Peers: 601186 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (7.2x).

Price to Earnings Ratio vs Industry

How does 601186's PE Ratio compare vs other companies in the CN Construction Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
601668 China State Construction Engineering
4.9x6.8%US$35.08b
600248 Shaanxi Construction Engineering Group
4.3x12.6%US$2.41b
000498 Shandong Hi-Speed Road&Bridge Group
4.1x8.0%US$1.36b
002482 Shenzhen Grandland Group
2.5xn/aUS$988.56m
601186 6.3xIndustry Avg. 24.5xNo. of Companies16PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 601186 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the CN Construction industry average (24.5x).

Price to Earnings Ratio vs Fair Ratio

What is 601186's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

601186 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.3x
Fair PE Ratio22.5x

Price-To-Earnings vs Fair Ratio: 601186 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 601186 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥9.19
CN¥11.83
+28.7%
7.3%CN¥13.00CN¥10.95n/a3
Nov ’25CN¥9.21
CN¥12.27
+33.2%
5.9%CN¥13.00CN¥11.54n/a2
Oct ’25CN¥8.91
CN¥10.53
+18.2%
16.9%CN¥13.00CN¥8.89n/a3
Sep ’25CN¥7.86
CN¥10.77
+37.0%
12.4%CN¥13.00CN¥8.89n/a5
Aug ’25CN¥8.42
CN¥11.19
+32.8%
9.9%CN¥13.00CN¥10.09n/a4
Jul ’25CN¥8.67
CN¥11.65
+34.3%
15.0%CN¥15.00CN¥10.09n/a6
Jun ’25CN¥8.63
CN¥11.65
+34.9%
15.0%CN¥15.00CN¥10.09n/a6
May ’25CN¥8.48
CN¥12.01
+41.6%
15.2%CN¥15.00CN¥10.09n/a6
Apr ’25CN¥8.70
CN¥12.10
+39.1%
15.0%CN¥15.00CN¥9.90n/a6
Mar ’25CN¥8.59
CN¥11.33
+31.9%
19.8%CN¥15.00CN¥7.40n/a8
Feb ’25CN¥8.26
CN¥11.52
+39.4%
21.3%CN¥15.00CN¥7.40n/a8
Jan ’25CN¥7.61
CN¥11.62
+52.7%
21.3%CN¥15.00CN¥7.40n/a8
Dec ’24CN¥7.76
CN¥11.62
+49.7%
21.3%CN¥15.00CN¥7.40n/a8
Nov ’24CN¥7.95
CN¥11.66
+46.7%
21.4%CN¥15.00CN¥7.40CN¥9.218
Oct ’24CN¥8.73
CN¥12.21
+39.9%
19.0%CN¥15.00CN¥7.40CN¥8.918
Sep ’24CN¥8.92
CN¥12.49
+40.0%
20.8%CN¥17.20CN¥7.40CN¥7.869
Aug ’24CN¥10.78
CN¥13.40
+24.3%
22.0%CN¥17.60CN¥7.40CN¥8.429
Jul ’24CN¥9.85
CN¥13.34
+35.4%
22.3%CN¥17.60CN¥7.40CN¥8.679
Jun ’24CN¥10.50
CN¥13.34
+27.0%
22.3%CN¥17.60CN¥7.40CN¥8.639
May ’24CN¥11.90
CN¥11.73
-1.4%
27.6%CN¥17.60CN¥6.30CN¥8.489
Apr ’24CN¥9.01
CN¥10.44
+15.9%
21.8%CN¥13.00CN¥6.30CN¥8.709
Mar ’24CN¥8.29
CN¥9.96
+20.2%
20.1%CN¥12.12CN¥6.30CN¥8.599
Feb ’24CN¥8.02
CN¥10.10
+25.9%
18.4%CN¥12.12CN¥6.30CN¥8.269
Jan ’24CN¥7.73
CN¥10.10
+30.6%
18.4%CN¥12.12CN¥6.30CN¥7.619
Dec ’23CN¥7.92
CN¥10.10
+27.5%
18.4%CN¥12.12CN¥6.30CN¥7.769
Nov ’23CN¥7.02
CN¥10.15
+44.5%
19.5%CN¥12.85CN¥6.30CN¥7.959

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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