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 comprise 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 July 1948 and is headquartered in Beijing, China.

Financial Highlights

Dec 2018	HKD	USD
Revenue	859,104.73M	109,614.00M
Gross Profit	78,030.06M	9,955.93M
Operating income	34,273.07M	4,372.93M
Income before tax	28,246.94M	3,604.05M
Net income	20,216.61M	2,579.45M
EBITDA	50,396.68M	6,430.16M
Diluted EPS	1.45	0.18
Dividends Per Share	0.23	0.03
Total Assets	1,046.47B	133,660.16M
Total liabilities	830,533.04M	106,079.44M
Total equity	170,296.40M	21,751.02M
Operating cash flow	1,937.91M	247.26M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	727,812.00M	721,697.51M	725,801.58M	779,522.07M	859,104.73M
Gross Profit	61,236.39M	64,193.55M	57,009.03M	65,760.92M	78,030.06M
Operating income	24,094.40M	25,906.40M	24,499.06M	26,495.15M	34,273.07M
Income before tax	19,551.21M	20,990.10M	22,198.65M	24,186.05M	28,246.94M
Net income	14,768.42M	15,597.95M	16,357.40M	18,180.81M	20,216.61M
EBITDA	37,606.02M	39,618.83M	38,753.19M	40,677.03M	50,396.68M
Diluted EPS	1.19	1.20	1.18	1.25	1.45
Dividends Per Share	0.18	0.17	0.18	0.22	0.23
Total Assets	779,442.41M	830,795.08M	847,156.76M	986,630.96M	1,046.47B
Total liabilities	647,443.99M	676,389.77M	689,807.96M	787,534.44M	830,533.04M
Total equity	115,818.12M	133,123.64M	136,806.50M	163,081.44M	170,296.40M
Operating cash flow	8,726.65M	62,317.01M	43,802.79M	29,803.59M	1,937.91M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	93,854.52M	93,091.35M	93,501.52M	100,030.84M	109,614.00M
Gross Profit	7,896.69M	8,280.29M	7,344.19M	8,438.65M	9,955.93M
Operating income	3,107.07M	3,341.65M	3,156.09M	3,399.94M	4,372.93M
Income before tax	2,521.21M	2,707.50M	2,859.74M	3,103.63M	3,604.05M
Net income	1,904.45M	2,011.97M	2,107.24M	2,333.02M	2,579.45M
EBITDA	4,849.46M	5,110.41M	4,992.38M	5,219.81M	6,430.16M
Diluted EPS	0.15	0.15	0.15	0.16	0.18
Dividends Per Share	0.02	0.02	0.02	0.02	0.03
Total Assets	100,510.31M	107,197.28M	109,266.13M	126,211.21M	133,660.16M
Total liabilities	83,488.91M	87,274.40M	88,971.31M	100,742.51M	106,079.44M
Total equity	14,934.92M	17,176.91M	17,645.28M	20,861.60M	21,751.02M
Operating cash flow	1,125.34M	8,038.23M	5,642.90M	3,824.49M	247.26M

Valuation Measures

Dec 2018
PER	7.29
ROA	1.98%
ROE	12.12%
Operating margin	3.98%
Profit margin	2.35%

Key executives

President & Executive Director: Shang Biao Zhuang
Chief Financial Officer & Chief Accountant: Xiuming Wang
Vice President: Cheng Jun Liu
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) (2.4%)
BlackRock Fund Advisors (2.2%)
JPMorgan Asset Management (UK) Ltd. (2.1%)
Grantham, Mayo, Van Otterloo & Co. LLC (1.6%)
Dimensional Fund Advisors LP (1.4%)
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: +86.10.5188.8114

Related Companies

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China Railway Construction 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
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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.
China Railway 24th Bureau Group Co., Ltd.
China Railway Urban Construction Group Co., Ltd.

Competitors

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

Last Updated on 22 Jan, 2020