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

Fundamentals

Very undervalued with adequate balance sheet 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


Market Performance


7 Day Return

-0.5%

601390

0.9%

CN Construction

1.8%

CN Market


1 Year Return

-21.6%

601390

-0.7%

CN Construction

27.1%

CN Market


Shareholder returns

601390IndustryMarket
7 Day-0.5%0.9%1.8%
30 Day-5.0%-4.1%-2.3%
90 Day-6.4%-4.3%4.9%
1 Year-20.0%-21.6%1.2%-0.7%29.4%27.1%
3 Year-27.9%-31.1%-26.1%-29.2%-9.7%-13.3%
5 Year100.5%88.4%37.3%28.7%38.6%30.3%

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?

47.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 601390 (CN¥6.03) is trading below our estimate of fair value (CN¥11.56)

Significantly Undervalued: 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 (8.3x) compared to the Construction industry average (19.4x).

PE vs Market: 601390 is good value based on its PE Ratio (8.3x) compared to the CN market (32.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: 601390 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 601390 is good value based on its PB Ratio (0.7x) compared to the CN Construction industry average (1.6x).


Next Steps

Future Growth

How is China Railway Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601390's forecast earnings growth (11.8% per year) is above the savings rate (2.7%).

Earnings vs Market: 601390's earnings (11.8% per year) are forecast to grow slower than the CN market (18.3% per year).

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

Revenue vs Market: 601390's revenue (7.9% per year) is forecast to grow slower than the CN market (15.2% per year).

High Growth Revenue: 601390's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

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

11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 601390's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: 601390's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 601390 had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Construction industry average (8.3%).


Return on Equity

High ROE: 601390's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: 601390's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 601390 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Railway Group's financial position?


Financial Position Analysis

Short Term Liabilities: 601390's short term assets (CN¥691.0B) exceeds its short term liabilities (CN¥651.5B)

Long Term Liabilities: 601390's short term assets (691.0B) exceeds its long term liabilities (130.8B)


Debt to Equity History and Analysis

Debt Level: 601390's debt to equity ratio (99.7%) is considered high

Reducing Debt: 601390's debt to equity ratio has reduced from 195.6% to 99.7% over the past 5 years.

Debt Coverage: 601390's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 601390's interest payments on its debt are well covered by EBIT (31.1x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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

2.12%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%0.5%markettop25%1.9%industryaverage2.1%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 601390's dividend (2.12%) is higher than the bottom 25% of dividend payers in the CN market (0.46%).

High Dividend: 601390's dividend (2.12%) is in the top 25% of dividend payers in the CN market (1.89%)

Stable Dividend: 601390 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 601390's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.7%), 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 (16.2% payout ratio).


Next Steps

Management

What is the CEO of China Railway Group's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Zongyan Zhang (56yo)

4.3yrs

Tenure

CN¥1,150,000

Compensation

Mr. Zhang Zongyan serves as Chairman of China Railway Group Limited since August 25, 2019. Mr. Zhang had been the President of China Railway Group Limited since July 13, 2015 until August 25, 2019 and has  ...


CEO Compensation Analysis

Information is not available.

Compensation vs Earnings: Zongyan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 601390's management team is seasoned and experienced (4.3 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

62yo

Average Age

Experienced Board: 601390's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Yun Chen (56yo)

    President

    • Tenure: 0.2yrs
  • Tengqun Yu (49yo)

    VP & General Counsel

    • Tenure: 5.6yrs
  • Longbiao Lin (62yo)

    Director of Internal Audit

    • Tenure: 12.1yrs
    • Compensation: CN¥245.00k
  • Chun Chung Tam (46yo)

    Joint Company Secretary

    • Tenure: 0yrs
  • Zongyan Zhang (56yo)

    CEO & Chairman

    • Tenure: 4.3yrs
    • Compensation: CN¥1.15m
  • Xian Zhang (58yo)

    VP & Director

    • Tenure: 0yrs
    • Compensation: CN¥1.12m
  • Liang Yang (50yo)

    Chief Financial Officer

    • Tenure: 5.6yrs
  • Wen He (54yo)

    Head of the Finance Department & Secretary

    • Tenure: 1.2yrs
  • Dun Kong (53yo)

    Chief Engineer

    • Tenure: 1.3yrs
  • Jiangqian Ma (50yo)

    Chief Economist

    • Tenure: 1.3yrs

Board Members

  • Timpson Chung (68yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥131.00k
  • Zheng Qingzhi (66yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥60.00k
  • Peizhang Guo (70yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥60.00k
  • Zongyan Zhang (56yo)

    CEO & Chairman

    • Tenure: 4.3yrs
    • Compensation: CN¥1.15m
  • Xian Zhang (58yo)

    VP & Director

    • Tenure: 0yrs
    • Compensation: CN¥1.12m
  • Wenxin Chen (55yo)

    Shareholder Representative Supervisor

    • Tenure: 8.8yrs
    • Compensation: CN¥498.00k
  • Liu Jianyuan (57yo)

    Employee Representative Supervisor

    • Tenure: 8.8yrs
    • Compensation: CN¥406.00k
  • Baoman Wen (67yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥60.00k
  • Zonglin Ma

    Non-Executive Director

    • Tenure: 0yrs
  • Huijia Zhang

    Chairman of the Supervisory Committee

    • Tenure: 1.3yrs

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¥140.796b
  • Shares outstanding: 24.57b
  • Website: https://www.crec.cn

Number of Employees


Location

  • China Railway Group Limited
  • Buliding No. 9
  • Fuxing Road 69
  • Beijing
  • China

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 segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 14:58
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.