SHSE:601390

Stock Analysis Report

Executive Summary

China Railway Group Limited, together with its subsidiaries, operates as an integrated construction company in the People’s Republic of China and other Asian countries.


Snowflake Analysis

Very undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 601390 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.5%

601390

1.8%

CN Construction

3.9%

CN Market


1 Year Return

-24.4%

601390

-24.3%

CN Construction

-7.0%

CN Market

Return vs Industry: 601390 matched the CN Construction industry which returned -25.5% over the past year.

Return vs Market: 601390 underperformed the CN Market which returned -9.3% over the past year.


Shareholder returns

601390IndustryMarket
7 Day6.5%1.8%3.9%
30 Day-0.5%-7.1%-8.2%
90 Day-3.0%-5.3%-3.6%
1 Year-22.9%-24.4%-22.9%-24.3%-5.4%-7.0%
3 Year-37.9%-40.6%-41.0%-43.6%-10.5%-14.1%
5 Year-60.3%-62.7%-46.6%-50.2%-21.8%-26.5%

Price Volatility Vs. Market

How volatile is China Railway Group'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 Group 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: 601390 (CN¥5.52) is trading below our estimate of fair value (CN¥36.18)

Significantly Below Fair Value: 601390 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 601390 is good value based on its PE Ratio (5.8x) compared to the Construction industry average (17.7x).

PE vs Market: 601390 is good value based on its PE Ratio (5.8x) compared to the CN market (32.3x).


Price to Earnings Growth Ratio

PEG Ratio: 601390 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 601390 is good value based on its PB Ratio (0.6x) compared to the CN Construction industry average (1.5x).


Next Steps

Future Growth

How is China Railway Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601390's forecast earnings growth (6.7% per year) is above the savings rate (3.2%).

Earnings vs Market: 601390's earnings (6.7% per year) are forecast to grow slower than the CN market (20.9% per year).

High Growth Earnings: 601390's earnings are forecast to grow, but not significantly.

Revenue vs Market: 601390's revenue (8.5% per year) is forecast to grow slower than the CN market (15.8% per year).

High Growth Revenue: 601390's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 601390's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

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

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 601390 has high quality earnings.

Growing Profit Margin: 601390's current net profit margins (2.8%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 601390's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: 601390's earnings growth over the past year (44.3%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: 601390 earnings growth over the past year (44.3%) exceeded the Construction industry 9.1%.


Return on Equity

High ROE: 601390's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is China Railway Group's financial position?


Financial Position Analysis

Short Term Liabilities: 601390's short term assets (CN¥709.8B) exceed its short term liabilities (CN¥676.0B).

Long Term Liabilities: 601390's short term assets (CN¥709.8B) exceed its long term liabilities (CN¥134.7B).


Debt to Equity History and Analysis

Debt Level: 601390's debt to equity ratio (94.3%) is considered high.

Reducing Debt: 601390's debt to equity ratio has reduced from 163.5% to 94.3% over the past 5 years.

Debt Coverage: 601390's debt is not well covered by operating cash flow (1.6%).

Interest Coverage: 601390's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

What is China Railway Group's current dividend yield, its reliability and sustainability?

2.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 601390's dividend (2.32%) is higher than the bottom 25% of dividend payers in the CN market (0.46%).

High Dividend: 601390's dividend (2.32%) is in the top 25% of dividend payers in the CN market (2.03%)


Stability and Growth of Payments

Stable Dividend: 601390's dividend payments have been volatile in the past 10 years.

Growing Dividend: 601390's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.5%), 601390's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 601390's dividends in 3 years are forecast to be well covered by earnings (18.2% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Yun Chen (56yo)

0.25

Tenure

Mr. Yun Chen is Chief Executive Officer at China Railway Group Limited since 2020. He served as President of China Railway Group Limited since August 25, 2019 until 2020 and has been its executive director ...


Leadership Team

NamePositionTenureCompensationOwnership
Zongyan Zhang
Executive Chairman0.67yrCN¥1.15mno data
Xian Zhang
VP & Directorno dataCN¥1.12mno data
Yun Chen
CEO & Executive Director0.25yrno datano data
Cui Sun
CFO & Chief Accountant0.083yrno datano data
Tengqun Yu
VP & General Counsel6.08yrsno datano data
Dun Kong
Chief Engineer1.83yrsno datano data
Jiangqian Ma
Chief Economist1.83yrsno datano data
Shiqi Wang
Executive Director0.083yrno datano data
Chun Chung Tam
Joint Company Secretaryno datano datano data
Wen He
Head of the Finance Department & Secretary1.67yrsno datano data

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: 601390's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zongyan Zhang
Executive Chairman0.67yrCN¥1.15mno data
Xian Zhang
VP & Directorno dataCN¥1.12mno data
Yun Chen
CEO & Executive Director0.25yrno datano data
Shiqi Wang
Executive Director0.083yrno datano data
Shui Ming Chung
Independent Non-Executive Directorno dataCN¥131.00kno data
Zheng Qingzhi
Independent Non-Executive Director5.83yrsCN¥60.00kno data
Peizhang Guo
Independent Non-Executive Director5.83yrsCN¥60.00kno data
Baoman Wen
Independent Non-Executive Director5.83yrsCN¥60.00kno data
Zonglin Ma
Non-Executive Directorno datano datano data
Huijia Zhang
Chairman of the Supervisory Committee1.83yrsno datano data

1.8yrs

Average Tenure

66yo

Average Age

Experienced Board: 601390's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 9.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: China Railway Group Limited
  • Ticker: 601390
  • Exchange: SHSE
  • Founded: 1950
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CN¥133.735b
  • Shares outstanding: 24.57b
  • Website: https://www.crec.cn

Number of Employees


Location

  • China Railway Group Limited
  • Unit 1201-1203 APEC Plaza
  • 12th Floor
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601390SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYDec 2007
601390XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2007
390SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDDec 2007
CRWO.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDDec 2007
CNODB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURDec 2007
390SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2007
390SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2007
CRWO.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

China Railway Group Limited, together with its subsidiaries, operates as an integrated construction company in the People’s Republic of China and other Asian countries. Its Infrastructure Construction segment constructs railways, highways, bridges, tunnels, metropolitan railways, buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works. The company’s Survey, Design and Consulting Services segment provides survey, design, consulting, research and development, feasibility study, and compliance certification services to infrastructure construction projects. Its Engineering Equipment and Component Manufacturing segment designs, researches and develops, manufactures, and sells turnouts, bridge steel structures, and other railway related equipment, engineering machinery, and materials. The company’s Property Development segment develops, sells, and manages residential and commercial properties. Its Other Businesses segment is involved in mining, financial, service concession arrangements operation, merchandise trading, and other ancillary businesses. China Railway Group Limited was founded in 1950 and is based in Kowloon, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 16:34
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.