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Industrial Services

China Railway Group Ltd.

Company Background

China Railway Group is a leading infrastructure builder owned by the Chinese government. It is the biggest construction company in Asia by revenue and one of the largest in the world in terms of business scale. Its core business is constructing railway infrastructure. China Railway is promoting the development of high-speed railways and urban transit systems at home and abroad. It is rapidly expanding by diversifying into such areas as expressway and bridge construction, and property development.

China Railway traces its roots back to the Ministry of Railways' General Bureau of Capital Construction, established in 1950. In 1989, China Railway Engineering Corp., the parent of China Railway, was founded. CREC became a state-owned enterprise under the State Council's direct supervision in 2003. China Railway went public in 2007 after a reorganization that saw it become CREC's core unit.

China Railway has built two-thirds of the total length of railways across China. Based on the expertise it has accumulated at home, the company is looking to boost infrastructure exports as a core player in the "One Belt, One Road," or "New Silk Road," initiative promoted by the administration of President Xi Jinping. In particular, the company plans to accelerate exports of railway infrastructure -- from rails to traffic control systems to rolling stock -- in collaboration with such concerns as CRRC, a state-owned manufacturer.

By 2020, China Railway plans to double its ratio of overseas sales to 10%. The company hopes to increase orders from Southeast Asian and other nations, takin

Business Summary

China Railway Group Ltd. engages in the provision of engineering and construction services. It operates through the following segments: Infrastructure Construction; Survey, Design and Consulting Services; Engineering Equipment and Component Manufacturing; and Other Businesses. The Infrastructure Construction segment builds and repairs railways, highways, bridges, tunnels, ports, docks, airports, and irrigation works. The Survey, Design and Consulting Services segment researches and develops feasibility studies and compliance certification of infrastructure projects. The Engineering Equipment and Component Manufacturing segment designs, produces, and trades railway equipment, engineering machineries, and steel products. The Other Businesses segment offers mining, merchandise trading, and financing services. The company was founded on September 12, 2007 and is headquartered in Beijing, China.

Financial Highlights

Dec 2018 HKDUSD
Revenue876,949.52M111,890.83M
Gross Profit83,480.31M10,651.33M
Operating income31,399.87M4,006.34M
Income before tax27,632.12M3,525.60M
Net income19,435.70M2,479.82M
EBITDA42,173.66M5,380.97M
Diluted EPS0.850.10
Dividends Per Share0.140.01
Total Assets1,075.03B137,308.21M
Total liabilities857,054.79M109,466.91M
Total equity181,898.36M23,232.88M
Operating cash flow8,696.26M1,109.56M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 742,741.31M 740,016.85M 739,440.66M 794,215.12M 876,949.52M
Gross Profit 60,998.40M 59,963.19M 58,033.01M 71,085.50M 83,480.31M
Operating income 21,481.83M 19,852.87M 20,823.55M 22,760.78M 31,399.87M
Income before tax 20,103.75M 20,684.23M 21,078.26M 22,249.96M 27,632.12M
Net income 12,915.02M 14,400.88M 13,796.68M 17,619.16M 19,435.70M
EBITDA 29,862.38M 28,996.66M 30,493.38M 32,481.30M 42,173.66M
Diluted EPS 0.60 0.65 0.60 0.77 0.85
Dividends Per Share 0.09 0.10 0.10 0.13 0.14
Total Assets 853,580.98M 851,572.43M 841,578.52M 1,013.08B 1,075.03B
Total liabilities 719,588.58M 698,025.51M 687,510.67M 821,778.05M 857,054.79M
Total equity 119,335.19M 141,191.74M 142,948.24M 171,878.56M 181,898.36M
Operating cash flow 14,401.35M 27,468.38M 55,829.37M 36,745.42M 8,696.26M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 95,779.72M 95,454.35M 95,258.58M 101,916.30M 111,890.83M
Gross Profit 7,866.01M 7,734.61M 7,476.11M 9,121.92M 10,651.33M
Operating income 2,770.17M 2,560.81M 2,682.59M 2,920.73M 4,006.34M
Income before tax 2,592.46M 2,668.04M 2,715.41M 2,855.18M 3,525.60M
Net income 1,665.44M 1,857.56M 1,777.36M 2,260.94M 2,479.82M
EBITDA 3,850.88M 3,740.26M 3,928.31M 4,168.10M 5,380.97M
Diluted EPS 0.07 0.08 0.07 0.09 0.10
Dividends Per Share 0.01 0.01 0.01 0.01 0.01
Total Assets 110,070.60M 109,878.17M 108,546.65M 129,594.89M 137,308.21M
Total liabilities 92,792.07M 90,066.05M 88,675.01M 105,123.00M 109,466.91M
Total equity 15,388.45M 18,217.93M 18,437.44M 21,986.94M 23,232.88M
Operating cash flow 1,857.11M 3,543.13M 7,192.22M 4,715.29M 1,109.56M

Valuation Measures

Dec 2018
PER7.34
ROA1.86%
ROE10.98%
Operating margin3.58%
Profit margin2.21%

Key executives

  • Chairman & General Manager: Zong Yan Zhang
  • President & Executive Director: Yun Chen
  • Chief Financial Officer: Liang Yang
  • Chief Engineer & Vice President: Hui Liu
  • Member-Supervisory Board & Head-Audit Department: Jing Hua Fan

Shareholders

  • National Council for Social Security Fund (7.9%)
  • Lehman Brothers Holdings, Inc. (Investment Portfolio) (4.9%)
  • China State-Owned Assets Supervision & Admn Commission (3.9%)
  • China Asset Management Co., Ltd. (2.9%)
  • The Vanguard Group, Inc. (2.9%)
  • BlackRock Fund Advisors (2.2%)
  • Dimensional Fund Advisors LP (1.1%)
  • Fiera Capital, Inc. (0.7%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • APG Asset Management NV (0.6%)

Contact Details

  • Website:http://www.crec.cn
  • Address: Block A, China Railway Square, No.69, Fuxing Road, Beijing, 100039, China

Related Companies

  • China Railway Engineering Corp. (M) Sdn. Bhd.
  • China Railway Capital Co., Ltd.
  • China Railway Finance Co., Ltd.
  • China Railway (Shanghai) Investment Co., Ltd.
  • China Railway City Development & Investment Group Co., Ltd.
  • China Railway Development & Investment Co., Ltd.
  • China Railway Investment Group Co., Ltd.
  • China Railway Guangzhou Engineering Group Co., Ltd.
  • China Railway Shanghai Engineering Group Co., Ltd.
  • China Railway Beijing Engineering Group Co., Ltd.
  • China Railway Erju Engineering Co. , Ltd.
  • China Railway Electrification Engineering Group Co., Ltd.
  • China Railway No 9 Engineering Group Co. , Ltd.
  • China Railway No.7 Engineering Group Co., Ltd.
  • China Railway No.6 Engineering Group Co., Ltd.
  • China Railway Material Trade Co., Ltd.
  • China Railway Liuyuan Group Co., Ltd.
  • Yunnan Longrun Real Estate Co., Ltd.
  • China Railway Engineering Consulting Group Co., Ltd.
  • China Railway Bureau Group Co., Ltd.
  • China Railway Xunjie Co. Ltd.
  • CREC Ruilong Logistics Co. Ltd.
  • China Railway Port & Channel Engineering Group Co. Ltd.
  • China Railway Engineering Design Institute Co. Ltd.
  • China Railway International Group Co., Ltd.
  • China Railway International Trading (HK) Ltd.
  • China Railway Communications Investment Group Co., Ltd.
  • China Railway Resources Huitung Ltd.
  • Inner Mongolia Guobai Railway Co. Ltd.
  • China Railway No. 8 Engineering Group Co., Ltd.

Competitors

  • China Communications Construction Co. Ltd. Class H
  • Arcadis NV
Last Updated on 13 Nov, 2019

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