China Railway Construction Corp. Ltd.

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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.

Business Summary

China Railway Construction Corp. Ltd. engages in the construction business. It operates the following business segment: 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 involves in the provision of survey, design and consultancy services, as well as technology and equipment research and development services. The Manufacturing Operations segment offers 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 comprises development, construction, and sale of residential and commercial properties. The Other Business Operations segment focuses on the logistics, finance and insurance. The company was founded on June 1,1948 and is headquartered in Beijing, China.

Financial Highlights

Dec 2019	HKD	USD
Revenue	936,409.32M	119,513.16M
Gross Profit	84,788.07M	10,821.43M
Operating income	35,746.95M	4,562.35M
Income before tax	29,062.47M	3,709.21M
Net income	21,496.62M	2,743.59M
EBITDA	55,667.36M	7,104.78M
Diluted EPS	1.50	0.19
Dividends Per Share	0.22	0.02
Total Assets	1,209.46B	155,223.34M
Total liabilities	958,657.35M	123,034.13M
Total equity	189,904.59M	24,372.36M
Operating cash flow	48,050.28M	6,132.61M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	721,697.51M	725,801.58M	779,522.07M	859,104.73M	936,409.32M
Gross Profit	64,193.55M	57,009.03M	65,760.92M	78,030.06M	84,788.07M
Operating income	25,906.40M	24,499.06M	26,495.15M	34,273.07M	35,746.95M
Income before tax	20,990.10M	22,198.65M	24,186.05M	28,246.94M	29,062.47M
Net income	15,597.95M	16,357.40M	18,180.81M	20,216.61M	21,496.62M
EBITDA	39,618.83M	38,753.19M	40,677.03M	50,396.68M	55,667.36M
Diluted EPS	1.20	1.18	1.25	1.45	1.50
Dividends Per Share	0.17	0.18	0.22	0.23	0.22
Total Assets	830,795.08M	847,156.76M	986,630.96M	1,046.47B	1,209.46B
Total liabilities	676,389.77M	689,807.96M	787,534.44M	830,533.04M	958,657.35M
Total equity	133,123.64M	136,806.50M	163,081.44M	170,296.40M	189,904.59M
Operating cash flow	62,317.01M	43,802.79M	29,803.59M	1,937.91M	48,050.28M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	93,091.35M	93,501.52M	100,030.84M	109,614.00M	119,513.16M
Gross Profit	8,280.29M	7,344.19M	8,438.65M	9,955.93M	10,821.43M
Operating income	3,341.65M	3,156.09M	3,399.94M	4,372.93M	4,562.35M
Income before tax	2,707.50M	2,859.74M	3,103.63M	3,604.05M	3,709.21M
Net income	2,011.97M	2,107.24M	2,333.02M	2,579.45M	2,743.59M
EBITDA	5,110.41M	4,992.38M	5,219.81M	6,430.16M	7,104.78M
Diluted EPS	0.15	0.15	0.16	0.18	0.19
Dividends Per Share	0.02	0.02	0.02	0.03	0.02
Total Assets	107,197.28M	109,266.13M	126,211.21M	133,660.16M	155,223.34M
Total liabilities	87,274.40M	88,971.31M	100,742.51M	106,079.44M	123,034.13M
Total equity	17,176.91M	17,645.28M	20,861.60M	21,751.02M	24,372.36M
Operating cash flow	8,038.23M	5,642.90M	3,824.49M	247.26M	6,132.61M

Valuation Measures

Dec 2019
PER	5.38
ROA	1.90%
ROE	11.93%
Operating margin	3.81%
Profit margin	2.29%

Key executives

President & Executive Director: Shang Biao Zhuang
Chief Financial Officer & Chief Accountant: Xiuming Wang
Vice President: Cheng Jun Liu
Security Affairs Representative: Hua Gang Xie
Joint Secretary: Deng Shan Zhao

Shareholders

National Council for Social Security Fund (9.0%)
The Vanguard Group, Inc. (3.5%)
Credit Suisse Asset Management (Schweiz) AG (2.8%)
Nordea Investment Management AB (Denmark) (2.3%)
BlackRock Fund Advisors (2.2%)
JPMorgan Asset Management (UK) Ltd. (1.6%)
Grantham, Mayo, Van Otterloo & Co. LLC (1.6%)
Dimensional Fund Advisors LP (1.5%)
BlackRock Investment Management (UK) Ltd. (0.8%)
Causeway Capital Management LLC (0.8%)

Contact Details

Website:http://www.crcc.cn
Address: East, No. 40 Fuxing Road, Haidian District, Beijing, 100855, China
Phone: +86.10.52688600

Related Companies

China Railway Construction Property Management Co., Ltd.
China Railway Construction Kunlun Investment Group Co., Ltd.
China Railway Construction Commercial Factoring Co., Ltd.
China Railway 17th Bureau Group 2nd Engineering Co., Ltd.
China Railway 12th Bureau Group 3rd Engineering Co., Ltd.
CRCC Financial Leasing Co., Ltd.
China Railway Construction Finance Co., Ltd.
Chongqing Tiefa Suiyu Expressway Co., Ltd.
China Railway Wuju Group the First Engineering Co., Ltd.
China Railway 16th Bureau Group No. 3 Engineering Co., Ltd.
China Railway Fifth Survey & Design Institute Group Co
Beijing CRCC Tianrui Machinery Equipment Co., Ltd.
China Railway Fourth Survey & Design Institute Group Co., Ltd.
China Railway First Survey & Design Institute Group Co., Ltd.
China Railway Maglev Transportation Investment Construction Co
China Railway Shanghai Design Institute Group Co., Ltd.
CRCC Urban Engineering Co., Ltd.
China Railway Goods & Materials Group Co., Ltd.
CRCC Nanfang Construction & Investment Co., Ltd
China Railway Construction Real Estate Group Co., Ltd.
CRCC Assets Management Co., Ltd.
CRCC Harbour & Channel Engineering Bureau Group Co.
CRCC Huabei Investment & Development Co., Ltd
China High-Tech Equipment Co., Ltd.
Chenghe Insurance Broker Co., Ltd.
China Railway Strait Construction Group Co. Ltd.
CRCC Kunlun Investment Group Co., Ltd.
China Railway 25th Bureau Group Co., Ltd.
CRCC Chongqing Investment Group Co., Ltd.
China Railway Goods & Materials Co., Ltd.

Competitors

Shikun & Binui Ltd
Actividades de Construccion y Servicios SA
China Communications Construction Co. Ltd. Class H
Arcadis NV

Last Updated on 9 Apr, 2020