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China Railway Group

SEHK:390
Snowflake Description

Very undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
390
SEHK
CN¥142B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

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. The last earnings update was 80 days ago. More info.


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390 Share Price and Events
7 Day Returns
0.2%
SEHK:390
0.1%
HK Construction
1%
HK Market
1 Year Returns
-0.2%
SEHK:390
-11.4%
HK Construction
-4.7%
HK Market
390 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Railway Group (390) 0.2% -7.4% -9.8% -0.2% -3.8% 35.1%
HK Construction 0.1% -3.5% -13.6% -11.4% -21.4% -4.6%
HK Market 1% 3.9% -7.8% -4.7% 17.5% 2%
1 Year Return vs Industry and Market
  • 390 outperformed the Construction industry which returned -11.4% over the past year.
  • 390 outperformed the Market in Hong Kong which returned -4.7% over the past year.
Price Volatility
390
Industry
5yr Volatility vs Market

390 Value

 Is China Railway Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Railway Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Railway Group.

SEHK:390 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:390
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.039 (1 + (1- 25%) (123.63%))
1.671
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.67
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.671 * 5.96%)
11.96%

Discounted Cash Flow Calculation for SEHK:390 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Railway Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:390 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 11.96%)
2020 26,922.24 Analyst x2 24,045.74
2021 29,928.22 Analyst x2 23,874.54
2022 32,324.98 Est @ 8.01% 23,031.35
2023 34,331.31 Est @ 6.21% 21,847.33
2024 36,029.20 Est @ 4.95% 20,478.11
2025 37,493.01 Est @ 4.06% 19,033.23
2026 38,784.60 Est @ 3.44% 17,585.25
2027 39,952.92 Est @ 3.01% 16,179.49
2028 41,035.45 Est @ 2.71% 14,842.34
2029 42,060.34 Est @ 2.5% 13,587.61
Present value of next 10 years cash flows CN¥194,504.99
SEHK:390 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥42,060.34 × (1 + 2%) ÷ (11.96% – 2%)
CN¥430,768.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥430,768.43 ÷ (1 + 11.96%)10
CN¥139,159.91
SEHK:390 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥194,504.99 + CN¥139,159.91
CN¥333,664.91
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥333,664.91 / 22,844.30
CN¥14.61
SEHK:390 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in SEHK:390 represents 0.89043x of SHSE:601390
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89043x
Value per Share
(Listing Adjusted, HKD)
= Value per Share (CNY) x Listing Adjustment Factor
= CN¥ 14.61 x 0.89043
HK$13.01
Value per share (HKD) From above. HK$13.01
Current discount Discount to share price of HK$5.77
= -1 x (HK$5.77 - HK$13.01) / HK$13.01
55.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Railway Group is available for.
Intrinsic value
>50%
Share price is HK$5.77 vs Future cash flow value of HK$13.01
Current Discount Checks
For China Railway Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Railway Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Railway Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Railway Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Railway Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:390 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.74
SHSE:601390 Share Price ** SHSE (2019-07-18) in CNY CN¥6.48
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 10.17x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.82x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Railway Group.

SEHK:390 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SHSE:601390 Share Price ÷ EPS (both in CNY)

= 6.48 ÷ 0.74

8.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Railway Group is good value based on earnings compared to the HK Construction industry average.
  • China Railway Group is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Railway Group's expected growth come at a high price?
Raw Data
SEHK:390 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
11.2%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 10 Publicly-Listed Construction Companies 0.56x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:390 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.79x ÷ 11.2%

0.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Railway Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on China Railway Group's assets?
Raw Data
SEHK:390 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥8.57
SHSE:601390 Share Price * SHSE (2019-07-18) in CNY CN¥6.48
Hong Kong Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.34x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:390 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SHSE:601390 Share Price ÷ Book Value per Share (both in CNY)

= 6.48 ÷ 8.57

0.76x

* Primary Listing of China Railway Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Railway Group is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess China Railway Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. China Railway Group has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

390 Future Performance

 How is China Railway Group expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Railway Group expected to grow at an attractive rate?
  • China Railway Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Railway Group's earnings growth is expected to exceed the Hong Kong market average.
  • China Railway Group's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:390 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:390 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 11.2%
SEHK:390 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 7.7%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 11.9%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 13.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:390 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:390 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 942,801 31,211 24,475 12
2020-12-31 877,622 26,457 22,486 12
2019-12-31 812,995 23,589 19,962 14
SEHK:390 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 752,269 1,261 17,056
2018-12-31 740,436 11,962 16,409
2018-09-30 716,845 15,740 17,289
2018-06-30 709,192 32,319 17,125
2018-03-31 707,002 25,687 15,855
2018-01-01 693,367 33,220 15,280
2017-09-30 671,360 39,100 13,598
2017-06-30 670,052 30,205 14,053
2017-03-31 650,062 37,689 12,156
2016-12-31 643,357 54,495 11,808
2016-09-30 636,238 40,424 13,012
2016-06-30 622,906 43,381 12,333

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Railway Group's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
  • China Railway Group's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:390 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from China Railway Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:390 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.05 1.14 0.97 9.00
2020-12-31 0.96 1.04 0.89 11.00
2019-12-31 0.86 0.89 0.85 6.00
SEHK:390 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.74
2018-12-31 0.72
2018-09-30 0.79
2018-06-30 0.76
2018-03-31 0.69
2018-01-01 0.67
2017-09-30 0.58
2017-06-30 0.61
2017-03-31 0.52
2016-12-31 0.52
2016-09-30 0.58
2016-06-30 0.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Railway Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Railway Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Railway Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

390 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Railway Group's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Railway Group's year on year earnings growth rate has been positive over the past 5 years.
  • China Railway Group's 1-year earnings growth is less than its 5-year average (7.6% vs 12.3%)
  • China Railway Group's earnings growth has exceeded the HK Construction industry average in the past year (7.6% vs -13.1%).
Earnings and Revenue History
China Railway Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Railway Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:390 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 752,268.82 17,055.63 26,697.51 13,621.56
2018-12-31 740,436.29 16,409.31 25,708.63 13,436.19
2018-09-30 716,845.28 17,289.05 46,876.91 1,348.34
2018-06-30 709,191.68 17,125.06 45,365.95 674.56
2018-03-31 707,002.05 15,854.87 30,389.28 12,349.66
2018-01-01 693,366.51 15,280.03 31,022.52 11,102.57
2017-09-30 671,360.23 13,598.19 26,644.52 6,521.12
2017-06-30 670,051.54 14,052.56 29,109.48 3,641.96
2017-03-31 650,061.88 12,156.22 31,665.07
2016-12-31 643,357.32 11,807.80 31,271.13
2016-09-30 636,237.82 13,012.07 32,259.92
2016-06-30 622,906.38 12,333.36 31,046.22
2016-03-31 626,106.91 11,877.32 30,855.82
2015-12-31 624,104.14 11,675.10 30,653.18
2015-09-30 612,876.37 11,097.29 30,634.20
2015-06-30 609,745.14 11,005.93 30,596.05
2015-03-31 619,953.08 10,516.48 30,857.51
2014-12-31 611,956.74 10,262.47 30,350.29
2014-09-30 607,433.18 10,171.39 28,067.63
2014-06-30 589,603.48 9,947.52 26,217.76
2014-03-31 580,703.62 9,707.35 25,508.26
2013-12-31 560,116.89 9,374.63 25,164.83
2013-09-30 548,293.54 9,394.30 24,698.42
2013-06-30 533,090.13 8,487.71 24,954.09
2013-03-31 502,762.82 7,959.93 24,437.51
2012-12-31 483,794.03 7,390.15 23,406.52
2012-09-30 444,142.03 7,395.55 45,993.27

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Railway Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Railway Group used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.
  • China Railway Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Railway Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Railway Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

390 Health

 How is China Railway Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Railway Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Railway Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Railway Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Railway Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Railway Group Company Filings, last reported 3 months ago.

SEHK:390 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 227,534.83 174,566.85 100,883.67
2018-12-31 222,144.03 179,961.34 144,409.61
2018-09-30 195,080.07 200,779.44 102,942.93
2018-06-30 189,028.67 182,041.87 119,475.69
2018-03-31 174,995.93 137,844.72 96,999.47
2018-01-01 170,772.77 164,894.75 134,693.80
2017-09-30 163,569.14 168,641.48 93,929.34
2017-06-30 160,709.42 159,139.86 93,559.90
2017-03-31 156,709.05 162,248.54 98,588.47
2016-12-31 149,159.20 163,358.51 125,417.95
2016-09-30 146,309.55 150,599.69 88,531.25
2016-06-30 142,182.25 164,195.83 86,631.33
2016-03-31 142,587.22 170,245.84 83,730.57
2015-12-31 139,401.13 172,307.65 104,748.48
2015-09-30 135,461.30 161,337.20 88,561.31
2015-06-30 121,087.22 185,605.02 69,349.98
2015-03-31 115,047.50 156,975.15 71,375.05
2014-12-31 109,063.82 178,671.75 79,196.31
2014-09-30 106,316.95 171,448.77 77,215.40
2014-06-30 99,608.46 195,256.41 80,877.91
2014-03-31 99,457.17 176,992.02 76,810.87
2013-12-31 96,799.99 183,567.44 83,376.68
2013-09-30 94,960.45 181,788.26 79,564.56
2013-06-30 90,504.09 189,480.06 82,544.11
2013-03-31 90,099.35 158,688.95 74,129.62
2012-12-31 88,159.80 161,324.60 72,696.03
2012-09-30 84,933.62 159,835.52 65,933.82
  • China Railway Group's level of debt (76.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (178.2% vs 76.7% today).
  • Debt is not well covered by operating cash flow (0.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 71.2x coverage).
X
Financial health checks
We assess China Railway Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Railway Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

390 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.98%
Current annual income from China Railway Group dividends. Estimated to be 2.39% next year.
If you bought HK$2,000 of China Railway Group shares you are expected to receive HK$40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Railway Group's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • China Railway Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:390 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:390 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.17 9.00
2020-12-31 0.16 10.00
2019-12-31 0.14 10.00
SEHK:390 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-28 0.128 1.966
2018-08-20 0.113 1.590
2017-07-13 0.088 1.054
2016-08-04 0.086 1.006
2015-05-19 0.078 0.809
2014-07-28 0.066 1.272
2013-07-15 0.052 1.974
2012-03-30 0.048 1.754
2011-06-27 0.045 1.517
2010-04-28 0.063 1.405
2010-04-27 0.063 1.212

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Railway Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but China Railway Group only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of China Railway Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.1x coverage).
X
Income/ dividend checks
We assess China Railway Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Railway Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Railway Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

390 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Zongyan Zhang
COMPENSATION CN¥1,150,000
AGE 56
TENURE AS CEO 4 years
CEO Bio

Mr. Zhang Zongyan has been the President of China Railway Group Limited since July 13, 2015 and has been its Chief Executive Officer since July, 2015. Mr. Zhang served as the President of China Railway Construction Corporation Limited from March 28, 2013 to July 6, 2015. Mr. Zhang served as a Vice President of China Railway Construction Corporation Limited from April 2009 to March 2013. Mr. Zhang has in-depth knowledge and understanding of extensive operation and management experience in the PRC construction industry. He serves as the Secretary to the communist party committee of China Railway Engineering Corporation. He joined CRCCG Group in 1981. He served as the Deputy General Manager of China Railway 12th Bureau Group Company Limited from April 2002 to October 2005, the Chairman and the Secretary to the communist party committee of China Railway 12th Bureau Group Company Limited from October 2005 to July 2008, the Chairman and the Deputy Secretary to the communist party committee of China Railway 12th Bureau Group Company Limited from July 2008 to April 2009. Mr. Zhang was the President and the deputy secretary to the communist party committee of CRCC and a director and the secretary to the communist party committee of CRCCG from March 2013 to July 2015. He has been an Executive Director of China Railway Group Limited since January 28, 2016. He serves as a Director of China Railway Engineering Corporation. He served as an Executive Director of China Railway Construction Corporation Limited since June 2013 until July 2015. He is a professor-level senior engineer. Mr. Zhang graduated from Guanghua School of Management of Peking University with a Master of Business Administration degree.

CEO Compensation
  • Zongyan's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Zongyan's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Railway Group management team in years:

5.3
Average Tenure
53
Average Age
  • The average tenure for the China Railway Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Zongyan Zhang

TITLE
CEO, President & Executive Director
COMPENSATION
CN¥1M
AGE
56
TENURE
4 yrs

Xian Zhang

TITLE
VP & Director
COMPENSATION
CN¥1M
AGE
58
TENURE
8.9 yrs

Liang Yang

TITLE
Chief Financial Officer
AGE
50
TENURE
5.3 yrs

Tengqun Yu

TITLE
VP & General Legal Advisor
AGE
49
TENURE
5.3 yrs

Wen He

TITLE
Head of the Finance Department & Secretary
AGE
54
TENURE
5.3 yrs

Dun Kong

TITLE
Chief Engineer
AGE
53
TENURE
1.1 yrs

Jiangqian Ma

TITLE
Chief Economist
AGE
50
TENURE
1.1 yrs

Chun Chung Tam

TITLE
Joint Company Secretary
AGE
46

Longbiao Lin

TITLE
Director of Internal Audit
COMPENSATION
CN¥245K
AGE
62
TENURE
11.8 yrs
Board of Directors Tenure

Average tenure and age of the China Railway Group board of directors in years:

5.1
Average Tenure
58
Average Age
  • The tenure for the China Railway Group board of directors is about average.
Board of Directors

Xian Zhang

TITLE
VP & Director
COMPENSATION
CN¥1M
AGE
58

Peizhang Guo

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥60K
AGE
70
TENURE
5.1 yrs

Zongyan Zhang

TITLE
CEO, President & Executive Director
COMPENSATION
CN¥1M
AGE
56
TENURE
3.5 yrs

Zheng Qingzhi

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥60K
AGE
66
TENURE
5.1 yrs

Huijia Zhang

TITLE
Chairman of the Supervisory Committee
TENURE
1.1 yrs

Baoman Wen

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥60K
AGE
67
TENURE
5.1 yrs

Timpson Chung

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥131K

Zonglin Ma

TITLE
Non-Executive Director

Wenxin Chen

TITLE
Shareholder Representative Supervisor
COMPENSATION
CN¥498K
AGE
55
TENURE
8.5 yrs

Liu Jianyuan

TITLE
Employee Representative Supervisor
COMPENSATION
CN¥406K
AGE
57
TENURE
8.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
19. Jun 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 14. Jun 19 14. Jun 19 -10,168,519 HK$6.28 HK$-63,847,130
14. Jun 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 11. Jun 19 11. Jun 19 13,744,050 HK$6.17 HK$84,751,332
06. Jun 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 03. Jun 19 03. Jun 19 -4,541,814 HK$5.87 HK$-26,674,536
01. May 19 Sell BlackRock, Inc. Company 26. Apr 19 26. Apr 19 -537,000 HK$6.23 HK$-3,346,099
01. Apr 19 Buy J.P. Morgan Asset Management, Inc. Company 27. Mar 19 27. Mar 19 5,315,982 HK$7.20 HK$38,283,061
29. Mar 19 Sell J.P. Morgan Asset Management, Inc. Company 26. Mar 19 26. Mar 19 -828,559 HK$7.28 HK$-6,031,577
19. Feb 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 14. Feb 19 14. Feb 19 1,518,200 HK$7.54 HK$11,451,631
14. Feb 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 11. Feb 19 11. Feb 19 -1,068,895 HK$7.35 HK$-7,852,954
08. Feb 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 04. Feb 19 04. Feb 19 7,255,549 HK$7.35 HK$53,311,616
08. Feb 19 Sell J.P. Morgan Asset Management, Inc. Company 04. Feb 19 04. Feb 19 -6,135,689 HK$7.35 HK$-45,083,218
08. Feb 19 Sell J.P. Morgan Asset Management, Inc. Company 01. Feb 19 01. Feb 19 -6,108,405 HK$7.32 HK$-44,700,074
07. Dec 18 Buy J.P. Morgan Asset Management, Inc. Company 04. Dec 18 04. Dec 18 361,028 HK$7.32 HK$2,640,993
19. Sep 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 14. Sep 18 14. Sep 18 4,939,945 HK$7.07 HK$34,931,334
13. Sep 18 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 10. Sep 18 10. Sep 18 -234,898 HK$6.72 HK$-1,579,595
10. Sep 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 05. Sep 18 05. Sep 18 1,985,382 HK$6.68 HK$13,262,946
04. Sep 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 30. Aug 18 30. Aug 18 2,503,606 HK$6.56 HK$16,425,899
26. Jul 18 Sell BlackRock, Inc. Company 23. Jul 18 23. Jul 18 -1,145,000 HK$5.83 HK$-6,670,541
X
Management checks
We assess China Railway Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Railway Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

390 News

Simply Wall St News

390 Company Info

Description

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 Beijing, China.

Details
Name: China Railway Group Limited
390
Exchange: SEHK
Founded: 1950
CN¥161,682,184,376
22,844,301,543
Website: http://www.crec.cn
Address: China Railway Group Limited
Buliding No. 9,
Fuxing Road 69,
Beijing,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SHSE 601390 Domestic Shares Shanghai Stock Exchange CN CNY 03. Dec 2007
XSSC 601390 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 03. Dec 2007
OTCPK CRWO.Y UNSPONSORED ADR Pink Sheets LLC US USD 31. Oct 2008
SEHK 390 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 07. Dec 2007
OTCPK CRWO.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 07. Dec 2007
DB CNO Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 07. Dec 2007
SHSC 390 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 07. Dec 2007
SZSC 390 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 07. Dec 2007
Number of employees
Current staff
Staff numbers
283,637
China Railway Group employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 12:51
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.