Asia300

China Railway Construction Corp. Ltd.

China

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Jul 21, 2017
Prev close: 10.8
Jul 21, 2017
Market cap:
Market cap(USD):
199,341M
25,528.4M
Shares: 13,579.5M

Currency in HKD

Company profile

Market(Ticker): HKG(1186)
Sector:
Industry:
Industrial Services
Engineering & Construction
Full time employees: 259,460

Business summary

China Railway Construction Corp. Ltd. engages in the construction business. It operates through five segments: Construction, Survey, Design and Consultancy, Manufacturing, Real Estate, and Other Business Operations. The Construction Operations segment engages in the construction of infrastructure such as railways, highways, metropolitan railways and real estate projects. The Survey, Design and Consultancy Operations segment engages in the provision of survey, design and consultancy services, as well as technology and equipment research and development service. The Manufacturing Operations segment engages in the design, research and development, production and sale of large track maintenance machinery as well as the manufacturing of components for railway construction. The Real Estate Operations segment engages in the development, construction and sale of real estate projects. The Other Business Operations segment mainly comprises real estate development and logistics businesses. The company was founded on November 4, 2007 and is headquartered in Beijing, China.

Company background

China Railway Construction (CRCC) is China's state-owned railway constructor. Its business operations are growing rapidly as it expands to Southeast Asia, Africa, South America and Eastern Europe. It is often ranked among the world's top general contractors.

As the successor of the Railway Corps of the People's Liberation Army, CRCC has developed railway infrastructure under the Ministry of Railways. It changed into its current form in 2007 following state-owned company reforms. Its government-controlled parent company still has 60% of outstanding shares.

CRCC builds railways as well as hydropower plants, airports and housing. It holds a 90% share in the domestic railway maintenance facilities. It is currently focusing on winning more contracts for building subways and high-speed railways overseas. It is aiming to expand its infrastructure exports, including railway design, construction, rail car manufacturing and railway traffic control systems.

As a state-owned company, its business is susceptible to Communist Party policies. Its overseas strategy is basically the same as Beijing's foreign policy. While CRCC can benefit from the government's infrastructure export policy, many developed countries argue it has problems in ensuring transparency in management and safety.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 725,801.58M
Gross profit 57,009.03M
Operating income 25,109.49M
Income before tax 22,198.65M
Net income 16,357.40M
EBITDA 39,363.61M
Diluted EPS 1.18
Dividends per share 0.18
Total assets 847,156.76M
Total liabilities 689,807.96M
Total equity 136,806.50M
Operating cash flow 43,802.79M

Currency in HKD

Revenue 93,501.52M
Gross profit 7,344.19M
Operating income 3,234.73M
Income before tax 2,859.74M
Net income 2,107.24M
EBITDA 5,071.02M
Diluted EPS 0.15
Dividends per share 0.02
Total assets 109,266.13M
Total liabilities 88,971.31M
Total equity 17,645.28M
Operating cash flow 5,642.90M

Currency in USD

Valuation measures

Dec 2016

PER 8.29
ROA 1.94%
ROE 12.11%
Operating margin 3.45%
Profit margin 2.25%

Key executive

  • President & Executive Director: Shang Biao Zhuang
  • Head-Finance: Xi Rui Cao
  • Vice President: Guo Bin Xia
  • Vice President: Ru Chen Liu
  • Supervisor: Xue Fu Li

Share holders

  • National Council For Social Security Fund (Investment Company)(9.0%)
  • The Vanguard Group, Inc.(3.2%)
  • Nordea Investment Management AB (Denmark)(2.4%)
  • BlackRock Fund Advisors(2.1%)
  • Hang Seng Investment Management Ltd.(1.3%)
  • APG Asset Management NV(1.0%)
  • Dimensional Fund Advisors LP(0.9%)
  • Grantham, Mayo, Van Otterloo & Co. LLC(0.8%)
  • HSBC Global Asset Management (Hong Kong) Ltd.(0.8%)
  • Causeway Capital Management LLC(0.8%)

Address

  • Website: http://www.crcc.cn
  • Address: No. 40 Fuxing Road, Haidian District, Beijing, 100855, China
  • Phone: +86.10.5188.8114

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