SHSE:601390

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

CN¥120.3b

Last Updated

2021/07/23 09:27 UTC

Data Sources

Company Financials +

Executive Summary

China Railway Group Limited, together with its subsidiaries, operates as an integrated construction company in the People’s Republic of China, Hong Kong, and Macau. More Details


Snowflake Analysis

Very undervalued 6 star dividend payer.


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 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 601390's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

601390

0.6%

CN Construction

1.4%

CN Market


1 Year Return

-5.9%

601390

-5.6%

CN Construction

13.8%

CN Market

Return vs Industry: 601390 matched the CN Construction industry which returned -5.6% over the past year.

Return vs Market: 601390 underperformed the CN Market which returned 13.8% over the past year.


Shareholder returns

601390IndustryMarket
7 Day1.0%0.6%1.4%
30 Day0%1.2%2.0%
90 Day-2.2%0.5%6.4%
1 Year-3.0%-5.9%-3.1%-5.6%15.3%13.8%
3 Yearn/a-6.0%-11.9%55.6%47.9%
5 Year-16.0%-23.1%-15.4%-22.1%35.4%26.1%

Long-Term 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¥5.26) is trading below our estimate of fair value (CN¥14.46)

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 (4.9x) compared to the CN Construction industry average (16.5x).

PE vs Market: 601390 is good value based on its PE Ratio (4.9x) compared to the CN market (33x).


Price to Earnings Growth Ratio

PEG Ratio: 601390 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 601390 is good value based on its PB Ratio (0.5x) compared to the CN Construction industry average (1.4x).


Future Growth

How is China Railway Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601390's forecast earnings growth (7.8% per year) is above the savings rate (3.3%).

Earnings vs Market: 601390's earnings (7.8% per year) are forecast to grow slower than the CN market (22.1% per year).

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

Revenue vs Market: 601390's revenue (9.2% per year) is forecast to grow slower than the CN market (17.9% per year).

High Growth Revenue: 601390's revenue (9.2% 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 (10.8%).


Past Performance

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

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 601390 has high quality earnings.

Growing Profit Margin: 601390's current net profit margins (2.5%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: 601390's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: 601390's earnings growth over the past year (21.5%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: 601390 earnings growth over the past year (21.5%) underperformed the Construction industry 22.6%.


Return on Equity

High ROE: 601390's Return on Equity (9.3%) is considered low.


Financial Health

How is China Railway Group's financial position?


Financial Position Analysis

Short Term Liabilities: 601390's short term assets (CN¥777.0B) exceed its short term liabilities (CN¥739.8B).

Long Term Liabilities: 601390's short term assets (CN¥777.0B) exceed its long term liabilities (CN¥196.3B).


Debt to Equity History and Analysis

Debt Level: 601390's debt to equity ratio (75.2%) is considered high.

Reducing Debt: 601390's debt to equity ratio has reduced from 118.1% to 75.2% over the past 5 years.

Debt Coverage: 601390's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: 601390's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


Dividend

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

3.42%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 23 2021Ex Dividend DateJul 30 2021Dividend Pay DateJul 30 20210 days from Ex DividendBuy in the next 7 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 601390's dividend (3.42%) is higher than the bottom 25% of dividend payers in the CN market (0.41%).

High Dividend: 601390's dividend (3.42%) is in the top 25% of dividend payers in the CN market (1.8%)


Stability and Growth of Payments

Stable Dividend: 601390's dividends per share have been stable 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 (16.7%), 601390's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 601390's dividends in 3 years are forecast to be well covered by earnings (16% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

China Railway Group has no CEO, or we have no data on them.


Leadership Team

Experienced Management: 601390's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: 601390's board of directors are not considered experienced ( 0.5 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 not been meaningfully diluted in the past year.


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¥120.251b
  • 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
  • Kowloon
  • Hong Kong

Listings


Biography

China Railway Group Limited, together with its subsidiaries, operates as an integrated construction company in the People’s Republic of China, Hong Kong, and Macau. Its Infrastructure Construction segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 09:27
End of Day Share Price2021/07/22 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.