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Industrial Services

China Railway Construction Corp. Ltd.

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 HKDUSD
Revenue859,104.73M109,614.00M
Gross Profit78,030.06M9,955.93M
Operating income34,273.07M4,372.93M
Income before tax28,246.94M3,604.05M
Net income20,216.61M2,579.45M
EBITDA50,396.68M6,430.16M
Diluted EPS1.450.18
Dividends Per Share0.230.03
Total Assets1,046.47B133,660.16M
Total liabilities830,533.04M106,079.44M
Total equity170,296.40M21,751.02M
Operating cash flow1,937.91M247.26M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 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 2014Dec 2015Dec 2016Dec 2017Dec 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
PER7.29
ROA1.98%
ROE12.12%
Operating margin3.98%
Profit margin2.35%

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. (3.4%)
  • Credit Suisse Asset Management (Schweiz) AG (2.8%)
  • Nordea Investment Management AB (Denmark) (2.4%)
  • BlackRock Fund Advisors (2.2%)
  • Grantham, Mayo, Van Otterloo & Co. LLC (1.6%)
  • JPMorgan Asset Management (UK) Ltd. (1.4%)
  • Dimensional Fund Advisors LP (1.4%)
  • Allianz Global Investors Asia Pacific Ltd. (1.0%)
  • Jennison Associates LLC (1.0%)

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

  • 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
  • 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.
  • China Railway 24th Bureau Group Co., Ltd.
  • China Railway Urban Construction Group Co., Ltd.
  • China Railway Construction Bridge Engineering Bureau Group Co.
  • CRCC Finance Co., Ltd.
  • Qingdao Finance Department

Competitors

  • Shikun & Binui Ltd
  • Actividades de Construccion y Servicios SA
  • China Communications Construction Co. Ltd. Class H
  • Stantec Inc
  • Arcadis NV
Last Updated on 23 Oct, 2019

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