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China Railway Group Limited Class H (HK:0390)
:0390
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China Railway Group (0390) AI Stock Analysis

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HK:0390

China Railway Group

(0390)

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Neutral 54 (OpenAI - Gpt-5.6Sol)
Rating:54Neutral
Price Target:
HK$3.50
â–²(1.45% Upside)
Action:Reiterated
Date:09/07/26
The score is held back primarily by weak financial quality—especially persistent negative free cash flow alongside rising leverage—despite a meaningful TTM revenue rebound. Technicals are also soft with the stock below major moving averages and negative momentum indicators. Offsetting these risks, the valuation is attractive with a low P/E and high dividend yield, lifting the overall score into the mid-range.
Positive Factors
Diversified infrastructure platform
The company’s presence across rail, highways, municipal works, housing, design, consulting, and equipment creates multiple infrastructure-related revenue channels. This breadth can support order capture across different project types and reduce reliance on any single construction niche over the medium term.
Negative Factors
Thin profitability
Very thin margins leave limited protection against cost overruns, unfavorable project mix, or working-capital volatility. The downward margin trend makes earnings quality less resilient, because relatively small execution or pricing pressures could materially reduce profit from a large revenue base.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified infrastructure platform
The company’s presence across rail, highways, municipal works, housing, design, consulting, and equipment creates multiple infrastructure-related revenue channels. This breadth can support order capture across different project types and reduce reliance on any single construction niche over the medium term.
Read all positive factors

China Railway Group (0390) vs. iShares MSCI Hong Kong ETF (EWH)

China Railway Group Business Overview & Revenue Model

Company Description
China Railway Group Limited, along with its various subsidiaries, operates as a comprehensive construction and engineering enterprise throughout mainland China, Hong Kong, and Macau. The company's diverse operations are organized into several key ...
How the Company Makes Money
China Railway Group primarily makes money by contracting and delivering infrastructure and construction projects for customers (typically government entities, state-owned companies, and other project owners). Revenue is recognized from engineering...

China Railway Group Financial Statement Overview

Summary
Revenue rebounded strongly in the TTM period (+18.8%) and net income is relatively stable, but the business runs on very thin margins (TTM gross ~9.4%, net ~1.9%). Balance-sheet risk has increased with meaningfully higher leverage (debt-to-equity ~2.22) and lower ROE (~5.9%). Cash generation is the major drag: operating cash flow is low relative to earnings and free cash flow is consistently negative (TTM ~-43.2B), increasing reliance on external funding.
Income Statement
62
Positive
Balance Sheet
44
Neutral
Cash Flow
28
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.28T1.09T1.16T1.26T1.15T1.07T
Gross Profit116.18B104.72B116.34B129.98B115.57B109.57B
EBITDA53.12B66.60B48.64B53.56B73.34B67.71B
Net Income23.96B22.89B27.89B33.48B31.27B27.62B
Balance Sheet
Total Assets2.46T2.47T2.26T1.83T1.61T1.36T
Cash, Cash Equivalents and Short-Term Investments205.76B266.30B262.09B243.39B248.76B186.07B
Total Debt677.90B520.19B467.10B380.07B390.36B295.58B
Total Liabilities1.96T1.93T1.75T1.37T1.19T1.00T
Stockholders Equity322.74B371.06B354.71B332.53B301.23B275.27B
Cash Flow
Free Cash Flow-43.22B-31.51B-29.95B-20.08B-18.76B-42.90B
Operating Cash Flow21.74B28.77B28.05B38.36B43.55B13.07B
Investing Cash Flow-51.77B-45.26B-82.29B-74.64B-84.39B-77.46B
Financing Cash Flow25.58B28.68B57.39B27.13B96.36B67.37B

China Railway Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.45
Price Trends
50DMA
3.42
Negative
100DMA
3.50
Negative
200DMA
3.79
Negative
Market Momentum
MACD
-0.02
Negative
RSI
49.84
Neutral
STOCH
52.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0390, the sentiment is Neutral. The current price of 3.45 is above the 20-day moving average (MA) of 3.39, above the 50-day MA of 3.42, and below the 200-day MA of 3.79, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 52.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0390.

China Railway Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$44.79B5.0910.83%7.58%-14.20%-12.79%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
54
Neutral
HK$120.09B5.565.93%5.67%-3.54%-19.21%
52
Neutral
HK$92.06B5.175.48%7.77%-3.83%-13.64%
50
Neutral
HK$98.45B7.834.28%6.20%-5.33%-38.33%
44
Neutral
HK$54.20B19.864.63%3.46%2.43%-36.44%
42
Neutral
HK$58.66B101.170.42%4.38%-17.13%-88.69%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0390
China Railway Group
3.33
-0.37
-10.10%
HK:1800
China Communications Construction Co
3.51
-1.42
-28.80%
HK:3311
China State Construction International Holdings
8.24
-1.69
-16.99%
HK:1186
China Railway Construction
4.44
-0.70
-13.70%
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.04
-0.14
-11.54%
HK:1618
Metallurgical Corporation of China Ltd. Class H
1.41
-0.95
-40.47%

China Railway Group Corporate Events

China Railway Group Sets 2026 Interim Dividend for Shareholders
Aug 28, 2026
China Railway Group Limited has announced an interim ordinary cash dividend of RMB 0.06374 per share for the six months ended 30 June 2026, following shareholder approval on 29 June 2026. Key details for Hong Kong shareholders, including the Hong ...
China Railway Group Interim Results Show Broad-Based Profit Decline
Aug 28, 2026
China Railway Group reported unaudited interim results for the six months to 30 June 2026 showing a broad-based decline in revenue and profitability across major segments. Total revenue fell 7.7% year-on-year to RMB 473.1 billion, with infrastruct...
China Railway Group Sets 2026 Interim Dividend at RMB 0.06374 Per Share
Aug 28, 2026
China Railway Group Limited has announced its 2026 interim dividend plan, confirming a cash payout of RMB 0.06374 per share, or RMB 0.6374 per 10 shares, inclusive of tax, to all shareholders based on the registered share capital on the future equ...
China Railway Group Schedules Board Meeting to Approve Interim Results and Consider Dividend
Aug 12, 2026
China Railway Group Limited has scheduled a board meeting for 27 and 28 August 2026 in Beijing to review and approve the interim financial results for the six months ended 30 June 2026. The board will also consider the payment of an interim divide...
China Railway Group Announces Board Secretary Transition as Ma Yonghong Retires
Jul 31, 2026
China Railway Group Limited announced that joint company secretary and secretary to the board, Ma Yonghong, will resign effective 1 August 2026 upon reaching retirement age, and will subsequently serve as an external director at the company’...
China Railway Group Q2 2026 Data Show Mixed Momentum Across Core Segments
Jul 31, 2026
China Railway Group Limited reported major operating data for the second quarter of 2026, highlighting trends across its main business segments of engineering construction, design and consulting services, and equipment manufacturing. The disclosur...
China Railway Group Wins Major Contracts for New Intercity and Western Rail Lines
Jul 21, 2026
China Railway Group has announced that several of its engineering subsidiaries have secured major contracts for new railway construction projects in China, underscoring its central role in the country’s transport infrastructure build-out. Th...
China Railway Group Sets 2025 Final Dividend and Details H Share Tax Treatment
Jul 9, 2026
China Railway Group Limited has declared a final ordinary cash dividend of RMB 0.086 per share for the financial year ended 31 December 2025, with shareholder approval secured on 29 June 2026. The dividend for H share investors will be paid in Hon...
China Railway Group Sets 2025 Final Dividend and Tax Arrangements for H Shareholders
Jul 9, 2026
China Railway Group will distribute a 2025 final dividend of RMB0.086 per share, equivalent to HK$0.0989 per H share before tax, to H shareholders on record as of 30 July 2026, with payment expected around 13 August 2026. The H share register will...
China Railway Group Shareholders Approve All Resolutions at 2025 AGM
Jun 29, 2026
China Railway Group reported that its 2025 annual general meeting was held in Beijing on 29 June 2026, with both on-site and online participation, and was chaired by chairman Chen Wenjian in compliance with PRC company law and the firm’s art...
China Railway Group Completes RMB800 Million A-Share Buyback to Cut Capital
Jun 22, 2026
China Railway Group has disclosed the results of its latest A-share repurchase programme, carried out via centralized competitive bidding between 20 June 2025 and 19 June 2026. The company used self-owned funds and special loans to buy back 154,91...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 07, 2026