SEHK:1186

Stock Analysis Report

China Railway Construction

Executive Summary

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

Snowflake

Fundamentals

Very undervalued with adequate balance sheet.


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


Market Performance


7 Day Return

0.7%

1186

0.6%

HK Construction

0.3%

HK Market


1 Year Return

-11.1%

1186

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: 1186 exceeded the Hong Kong Construction industry which returned -14.9% over the past year.

Return vs Market: 1186 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1186IndustryMarket
7 Day0.7%0.6%0.3%
30 Day-7.3%-4.7%0.5%
90 Day-7.7%-10.5%-4.6%
1 Year-8.7%-11.1%-11.1%-14.9%4.9%1.3%
3 Year-7.5%-14.0%-25.3%-33.6%15.3%3.7%
5 Year19.1%7.2%0.004%-15.1%20.0%-0.006%

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?

48.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1186 (HK$8.69) is trading below our estimate of fair value (HK$17)

Significantly Below Fair Value: 1186 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1186 is good value based on its PE Ratio (7.2x) compared to the Construction industry average (10.3x).

PE vs Market: 1186 is good value based on its PE Ratio (7.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1186 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1186 is good value based on its PB Ratio (0.8x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

How is China Railway Construction forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1186's forecast earnings growth (10.7% per year) is above the savings rate (2%).

Earnings vs Market: 1186's earnings (10.7% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 1186's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1186's revenue (8.7% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1186's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1186's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

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

10.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1186's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: 1186's earnings growth over the past year (7.9%) is below its 5-year average (10.5% per year).

Earnings vs Industry: 1186 earnings growth over the past year (7.9%) exceeded the Construction industry -12.4%.


Return on Equity

High ROE: 1186's Return on Equity (9.9%) is considered low.


Return on Assets

ROA vs Industry: 1186's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 1186 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Railway Construction's financial position?


Financial Position Analysis

Short Term Liabilities: 1186's short term assets (CN¥712.0B) exceeds its short term liabilities (CN¥659.9B)

Long Term Liabilities: 1186's short term assets (712.0B) exceeds its long term liabilities (124.4B)


Debt to Equity History and Analysis

Debt Level: 1186's debt to equity ratio (103.5%) is considered high

Reducing Debt: 1186's debt to equity ratio has reduced from 181.4% to 103.5% over the past 5 years.

Debt Coverage: 1186's debt is not well covered by operating cash flow (8.5%).

Interest Coverage: 1186's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet

Inventory Level: 1186 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1186's debt is covered by short term assets (assets are 3.190530x debt).


Next Steps

Dividend

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

2.19%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.3%markettop25%6.2%industryaverage4.7%forecastin3Years2.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1186's dividend (2.19%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1186's dividend (2.19%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 1186's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1186's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.7%), 1186's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1186's dividends in 3 years are forecast to be thoroughly covered by earnings (14.7% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Shangbiao Zhuang (57yo)

3.8yrs

Tenure

CN¥1,042,000

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 ($USD147.26K) is about average for companies of similar size in the Hong Kong market ($USD807.54K).

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


Management Age and Tenure

3.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 1186's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Board: 1186's board of directors are considered experienced (5 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.


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Ownership Breakdown


Management Team

  • Fenjian Chen (57yo)

    Chairman

    • Tenure: 1.1yrs
    • Compensation: CN¥292.00k
  • Shangbiao Zhuang (57yo)

    President

    • Tenure: 3.8yrs
    • Compensation: CN¥1.04m
  • Chun Biu Law (45yo)

    Joint Company Secretary

    • Tenure: 0yrs
  • Ruchen Liu (55yo)

    Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥932.00k
  • Dayang Chen (56yo)

    Executive Director

    • Tenure: 0.3yrs
  • Xiuming Wang (56yo)

    CFO, Chief Accountant & General Legal Counsel

    • Tenure: 5.5yrs
  • Chunde Li

    Secretary to the Discipline Inspection Committee

    • Tenure: 4.8yrs
  • Dengshan Zhao (57yo)

    Secretary to the Board & Joint Company Secretary

    • Tenure: 1.4yrs
  • Guoying Qiao

    Head of the Finance Department & Finance Controller

    • Tenure: 0yrs

Board Members

  • Huacheng Wang (56yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥190.00k
  • Patrick Sun (61yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥155.00k
  • Fenjian Chen (57yo)

    Chairman

    • Tenure: 1.1yrs
    • Compensation: CN¥292.00k
  • Shangbiao Zhuang (57yo)

    President

    • Tenure: 3.8yrs
    • Compensation: CN¥1.04m
  • Ruchen Liu (55yo)

    Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥932.00k
  • Dayang Chen (56yo)

    Executive Director

    • Tenure: 0.3yrs
  • Xirui Cao (48yo)

    Chairman of Supervisory Committee

    • Tenure: 1.8yrs
  • Wen Cheng (66yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥60.00k
  • Amanda Lu (64yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥147.00k
  • Fuxing Ge (62yo)

    Non-Executive Director

    • Tenure: 5yrs

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: 1186
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CN¥126.363b
  • Listing Market Cap: CN¥140.073b
  • Shares outstanding: 13.58b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601186SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYMar 2008
601186XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYMar 2008
1186SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDMar 2008
4FFDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURMar 2008
CWYC.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDMar 2008
1186SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDMar 2008
1186SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDMar 2008
CWYC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

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 Analysis2019/10/22 12:50
End of Day Share Price2019/10/22 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.