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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

(OTC:0390)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
HK$4.00
▲(6.67% Upside)
The overall stock score is driven by a strong valuation, with an attractive P/E ratio and high dividend yield, making it appealing for value investors. However, financial performance concerns, particularly in cash flow and leverage, weigh on the score. Technical analysis indicates a lack of upward momentum, further tempering the outlook.

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

China Railway Group Business Overview & Revenue Model

Company DescriptionChina Railway Group Limited, together with its subsidiaries, operates as an integrated construction company in the People's Republic of China, Hong Kong, and Macau. Its Infrastructure Construction segment constructs railways, highways, bridges, tunnels, metropolitan railways, buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works. The company's Survey, Design and Consulting Services segment provides survey, design, consulting, research and development, feasibility study, and compliance certification services to infrastructure construction projects. Its Engineering Equipment and Component Manufacturing segment designs, researches and develops, manufactures, and sells turnouts, bridge steel structures, other railway-related equipment, engineering machinery, and materials. The company's Property Development segment develops, sells, and manages residential and commercial properties. Its Other Businesses segment is involved in mining, financial, service concession arrangements operation, merchandise trading, and other ancillary businesses. China Railway Group Limited was founded in 1950 and is headquartered in Beijing, China.
How the Company Makes MoneyChina Railway Group Limited generates revenue through its diverse operations in several key areas. The primary revenue stream comes from its infrastructure construction services, particularly in railway, highway, and urban transit projects. The company also earns significant income from its engineering, procurement, and construction (EPC) contracts. Beyond construction, CREC is involved in real estate development, which contributes to its earnings through property sales and management. Additionally, the company manufactures and sells engineering equipment, adding another layer to its revenue model. CREC's international projects and strategic partnerships with governments and other corporations further enhance its revenue potential by expanding its market reach and securing large-scale contracts.

China Railway Group Financial Statement Overview

Summary
China Railway Group shows strong profitability and effective cost management, but faces challenges in revenue consistency and high leverage. The cash flow position is concerning, with negative free cash flow highlighting an area for improvement. The company needs to address these issues to ensure sustainable growth and financial stability.
Income Statement
78
Positive
China Railway Group has demonstrated strong revenue growth and solid profitability. The TTM (Trailing-Twelve-Months) Gross Profit Margin is approximately 10.01%, and the Net Profit Margin is 2.31%. However, the revenue has decreased by 9.38% from the previous year, indicating some volatility. The EBIT and EBITDA margins are healthy at 3.19% and 4.59%, respectively, showcasing effective cost management despite the revenue dip.
Balance Sheet
70
Positive
The company's balance sheet reveals a moderate Debt-to-Equity Ratio of 1.41, indicating substantial leverage, which could pose financial risks. ROE stands at 7.27%, reflecting a reasonable return on shareholders’ equity. The Equity Ratio is 16.01%, suggesting a balanced but cautious approach to financing with equity.
Cash Flow
62
Positive
The cash flow situation is challenging, with negative Free Cash Flow in the TTM period. Operating Cash Flow to Net Income Ratio is negative, indicating cash flow issues despite recorded net income. The Free Cash Flow to Net Income Ratio is -1.43, suggesting that the company is struggling to convert net income into free cash due to high capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.13T1.16T1.26T1.15T1.07T974.75B
Gross Profit111.99B116.34B129.98B115.57B109.57B99.17B
EBITDA49.38B48.64B63.91B73.34B67.71B53.83B
Net Income25.44B27.89B33.48B31.27B27.62B25.19B
Balance Sheet
Total Assets2.38T2.26T1.83T1.61T1.36T1.20T
Cash, Cash Equivalents and Short-Term Investments204.78B262.09B243.39B248.76B186.07B179.83B
Total Debt526.72B467.10B380.07B390.36B295.58B241.29B
Total Liabilities1.86T1.75T1.37T1.19T1.00T886.93B
Stockholders Equity366.75B354.71B332.53B301.23B275.27B255.34B
Cash Flow
Free Cash Flow-33.29B-29.95B-20.08B-18.76B-42.90B-12.30B
Operating Cash Flow-79.63B28.05B38.36B43.55B13.07B30.99B
Investing Cash Flow-73.30B-82.29B-74.64B-84.39B-77.46B-63.14B
Financing Cash Flow58.56B57.39B27.13B96.36B67.37B40.20B

China Railway Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.75
Price Trends
50DMA
3.95
Negative
100DMA
3.73
Positive
200DMA
3.64
Positive
Market Momentum
MACD
-0.05
Positive
RSI
37.32
Neutral
STOCH
21.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0390, the sentiment is Negative. The current price of 3.75 is below the 20-day moving average (MA) of 3.81, below the 50-day MA of 3.95, and above the 200-day MA of 3.64, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 21.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
79
Outperform
29.57B10.847.82%5.94%11.89%
74
Outperform
73.17B7.954.41%2.60%-18.28%1.37%
70
Outperform
$138.94B3.607.91%5.19%-7.46%-21.80%
69
Neutral
52.35B5.3213.19%6.31%-5.14%-4.05%
66
Neutral
69.09B5.327.24%3.64%11.09%3.52%
51
Neutral
14.00B37.273.36%-1.99%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0390
China Railway Group
3.75
-0.12
-3.20%
CCOHF
China State Construction International Holdings
0.88
-0.28
-24.14%
DE:2E5
China Energy Engineering Corp. Ltd. Class H
0.13
0.03
30.00%
DE:6MT
Metallurgical Corporation of China Ltd. Class H
0.25
0.09
56.25%
DE:1NS
SINOPEC Engineering (Group) Co., Ltd. Class H
0.72
0.16
28.57%
DE:4AI
China Aluminum International Engineering Corporation Limited Class H
0.25
0.03
13.64%

China Railway Group Corporate Events

China Railway Group Reports Decline in 2025 Interim Results
Aug 29, 2025

China Railway Group Limited announced its unaudited interim results for the first half of 2025, reporting a decline in revenue and profit compared to the previous year. The company experienced a 5.9% decrease in total revenue, with significant drops in infrastructure construction and equipment manufacturing sectors. Despite the downturn, property development saw a slight increase in revenue. The results reflect challenges in the construction sector, impacting the company’s financial performance and market positioning.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Announces Board Committee Changes
Aug 29, 2025

China Railway Group Limited has announced a change in the composition of its Safety, Health and Environmental Protection Committee. The committee now includes five directors, with Mr. Chen Wenjian serving as the Chairman. This change is part of the company’s ongoing efforts to enhance its governance in safety, health, and environmental protection, which are crucial areas for its operations and industry positioning.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Announces Board Composition and Committee Roles
Aug 29, 2025

China Railway Group Limited has announced the composition of its board of directors and the roles within its five board committees. This announcement reflects the company’s strategic focus on governance and operational oversight, potentially impacting its decision-making processes and stakeholder engagement.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Enhances Audit and Risk Management Procedures
Aug 29, 2025

China Railway Group Limited has amended its Rules of Procedures for the Audit and Risk Management Committee to enhance its supervisory role over financial information, risk management, and internal and external audits. The amendments aim to strengthen the committee’s effectiveness in reviewing financial disclosures and internal controls, thereby potentially improving the company’s governance and risk management practices.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Enhances Governance with Amended Remuneration Committee Rules
Aug 29, 2025

China Railway Group Limited has amended the rules for its Remuneration and Appraisal Committee to enhance governance and oversight of director and senior management compensation. The committee, composed mainly of independent non-executive directors, is tasked with formulating appraisal standards, reviewing remuneration policies, and ensuring fair compensation practices. These changes aim to align the company’s governance practices with regulatory standards and improve decision-making processes related to executive compensation.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Updates Nomination Committee Procedures
Aug 29, 2025

China Railway Group Limited has amended the rules of procedures for its Nomination Committee, which is responsible for advising the board of directors on personnel nominations and management systems. The changes aim to enhance the committee’s effectiveness in selecting and recommending qualified candidates for directorship and senior management positions, thereby supporting the company’s corporate strategy and governance structure.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

Tragic Incident at China Railway’s Jianzha Yellow River Bridge
Aug 24, 2025

China Railway Group Limited announced a tragic incident involving the Jianzha Yellow River Bridge, where a cable broke, resulting in the death of 12 people and four missing. The company has initiated emergency response plans and is cooperating with government authorities for rescue and investigation efforts. Despite the severity of the incident, it is not expected to significantly impact the company’s overall operations and performance.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Schedules Board Meeting to Approve Interim Results
Aug 19, 2025

China Railway Group Limited has announced a board meeting scheduled for August 29, 2025, to approve the interim results for the first half of the year. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the year.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.80 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

China Railway Group Reports Mixed Q2 2025 Performance
Jul 17, 2025

In the second quarter of 2025, China Railway Group Limited reported a decline in new contracts across several business segments, with engineering construction and equipment manufacturing experiencing decreases of 5.3% and 20.7% respectively. However, the featured property segment saw a significant increase of 38.5%, indicating a potential shift in market focus or strategy. This mixed performance may impact the company’s operational strategies and stakeholder interests moving forward.

The most recent analyst rating on (HK:0390) stock is a Buy with a HK$4.80 price target. To see the full list of analyst forecasts on China Railway Group stock, see the HK:0390 Stock Forecast page.

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 17, 2025