China Railway Construction Corporation Limited

SZSC:1186 Stock Report

Market Cap: HK$125.5b

China Railway Construction Valuation

Is 1186 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1186 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1186 (HK$5.37) is trading above our estimate of fair value (HK$3.27)

Significantly Below Fair Value: 1186 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1186?

Key metric: As 1186 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1186. This is calculated by dividing 1186's market cap by their current earnings.
What is 1186's PE Ratio?
PE Ratio6.3x
EarningsCN¥19.82b
Market CapCN¥116.78b

Price to Earnings Ratio vs Peers

How does 1186's PE Ratio compare to its peers?

The above table shows the PE ratio for 1186 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average4.8x
1800 China Communications Construction
3.5x10.0%HK$157.4b
3996 China Energy Engineering
4.5xn/aHK$90.6b
1618 Metallurgical Corporation of China
5.7x15.5%HK$68.8b
3311 China State Construction International Holdings
5.6x12.3%HK$54.6b
1186 China Railway Construction
6.3x8.1%HK$116.8b

Price-To-Earnings vs Peers: 1186 is expensive based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (4.8x).

Price to Earnings Ratio vs Industry

How does 1186's PE Ratio compare vs other companies in the HK Construction Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
385 Chinney Alliance Group
2xn/aUS$27.13m
8188 GME Group Holdings
1.5xn/aUS$22.36m
8373 Indigo Star Holdings
1.5xn/aUS$3.19m
No more companies available in this PE range
1186 6.3xIndustry Avg. 10.3xNo. of Companies13PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1186 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the Hong Kong Construction industry average (10.1x).

Price to Earnings Ratio vs Fair Ratio

What is 1186's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1186 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.3x
Fair PE Ratio8.7x

Price-To-Earnings vs Fair Ratio: 1186 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (8.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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