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China Railway Construction
(1186)
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Rating:52Neutral
Price Target:
HK$4.50
Action:Reiterated
Date:08/29/26
The score is held back primarily by financial fundamentals—rising leverage and persistently negative/volatile free cash flow—despite stable but low-margin profitability. Technicals also lean weak with the stock below longer-term moving averages and negative MACD. Offsetting these risks, valuation is a clear positive with a very low P/E and high dividend yield.
Positive Factors
Infrastructure Lifecycle Coverage
Coverage across design, construction and project management supports end-to-end participation in infrastructure projects. This can deepen customer relationships, broaden contract opportunities and reduce reliance on a single service stage over the medium term.
Negative Factors
Rising Leverage
The sharp increase in debt relative to equity weakens financial flexibility and raises exposure to financing and project delays. Higher leverage can constrain future investment capacity and make earnings more vulnerable when infrastructure cash flows are uneven.
Read all positive and negative factors
Positive Factors
Negative Factors
Infrastructure Lifecycle Coverage
Coverage across design, construction and project management supports end-to-end participation in infrastructure projects. This can deepen customer relationships, broaden contract opportunities and reduce reliance on a single service stage over the medium term.
Read all positive factors
China Railway Construction (1186) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$91.80B
Dividend Yield7.78%
Average Volume (3M)3.65M
Price to Earnings (P/E)5.2
Beta (1Y)0.76
Revenue Growth-3.83%
EPS Growth-13.64%
CountryHK
Employees250,306
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.17
Shares Outstanding2,076,296,000
10 Day Avg. Volume4,312,207
30 Day Avg. Volume3,650,343
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)0.22
Price to Sales (P/S)0.07
P/FCF Ratio-1.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.50Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.36
Revenue Forecast (FY)HK$1.03T
China Railway Construction Business Overview & Revenue Model
Company Description
China Railway Construction Corporation Limited (CRCC), a subsidiary of China Railway Construction Corporation, operates as a comprehensive construction conglomerate with significant presence in Mainland China and internationally. Established in Be...
How the Company Makes Money
China Railway Construction primarily makes money by contracting to build infrastructure and engineering projects and then recognizing revenue as it performs work under those contracts. Its main revenue stream is construction contracting/engineerin...
China Railway Construction Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
38
Negative
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 966.09B | 1.03T | 1.07T | 1.14T | 1.10T | 1.02T |
| Gross Profit | 96.05B | 100.12B | 109.57B | 116.79B | 110.57B | 97.88B |
| EBITDA | 42.14B | 67.55B | 65.74B | 67.59B | 64.21B | 59.25B |
| Net Income | 17.47B | 18.36B | 22.22B | 26.10B | 26.68B | 24.69B |
Balance Sheet | ||||||
| Total Assets | 2.17T | 2.08T | 1.86T | 1.66T | 1.52T | 1.35T |
| Cash, Cash Equivalents and Short-Term Investments | 176.55B | 192.93B | 187.24B | 168.59B | 159.39B | 127.28B |
| Total Debt | 801.30B | 550.08B | 424.38B | 282.57B | 260.86B | 232.23B |
| Total Liabilities | 1.77T | 1.66T | 1.44T | 1.25T | 1.14T | 1.01T |
| Stockholders Equity | 302.56B | 340.29B | 328.25B | 309.84B | 290.48B | 268.79B |
Cash Flow | ||||||
| Free Cash Flow | -47.90B | -44.64B | -69.37B | -14.51B | 25.87B | -40.18B |
| Operating Cash Flow | 4.25B | 2.96B | -31.42B | 20.41B | 56.13B | -7.30B |
| Investing Cash Flow | -58.74B | -56.96B | -48.04B | -55.91B | -55.65B | -61.07B |
| Financing Cash Flow | 42.41B | 59.83B | 94.76B | 44.59B | 33.89B | 10.60B |
China Railway Construction Technical Analysis
Negative
―
Price Trends
4.54
Negative
4.68
Negative
4.88
Negative
Market Momentum
-0.03
Positive
46.64
Neutral
80.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1186, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 4.55, equal to the 50-day MA of 4.54, and equal to the 200-day MA of 4.88, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 80.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1186.
China Railway Construction Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$45.45B | 5.23 | 10.83% | 7.46% | -14.20% | -12.79% | |
68 Neutral | HK$26.14B | 13.64 | 4.87% | 6.68% | 14.07% | -35.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | HK$91.80B | 5.22 | 5.48% | 7.78% | -3.83% | -13.64% | |
46 Neutral | HK$14.91B | 52.82 | 8.67% | 0.40% | 0.61% | 61.74% | |
44 Neutral | HK$54.19B | 20.18 | 4.63% | 3.39% | 2.43% | -36.44% | |
42 Neutral | HK$58.63B | 102.34 | 0.42% | 4.41% | -17.13% | -88.69% |
* Industrials Sector Average
HK:1186
China Railway Construction
4.44
-0.63
-12.37%
HK:3311
China State Construction International Holdings
8.48
-1.59
-15.76%
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.06
-0.11
-9.13%
HK:1618
Metallurgical Corporation of China Ltd. Class H
1.40
-0.82
-36.94%
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
5.64
-1.25
-18.19%
HK:2068
China Aluminum International Engineering Corporation Limited Class H
1.80
-0.58
-24.26%
China Railway Construction Corporate Events
China Railway Construction Publishes Unaudited 2026 Interim Results and Flags Key Risks
Aug 28, 2026
China Railway Construction has released its unaudited interim results for the six months ended 30 June 2026, confirming that its 2026 interim report meets disclosure requirements in both the Shanghai and Hong Kong markets and will be published by ...
China Railway Construction Sets Online Briefing on 2026 Interim Results
Aug 21, 2026
China Railway Construction Corporation Limited has announced plans to publish its 2026 interim report on 29 August 2026, followed by an online results presentation on 2 September 2026 via the SSE ROADSHOW platform. The session will run from 15:00 ...
CRCC Wins Major Urban Renewal, Intelligent Mining and Offshore Wind Contracts
Aug 19, 2026
China Railway Construction Corporation Limited has disclosed that its subsidiaries recently secured several major contracts each exceeding RMB1.5 billion, underscoring the group’s strong position in China’s infrastructure and industria...
China Railway Construction sets board meeting to approve 2026 interim results
Aug 18, 2026
China Railway Construction Corporation Limited has scheduled a board meeting at its Beijing headquarters on 28 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026. The announcement signals that the...
China Railway Construction Sees Domestic Contract Slump, Overseas Growth in Q2 2026
Aug 4, 2026
China Railway Construction Corporation Limited reported major operating data for the second quarter of 2026 showing a broad-based decline in newly signed contracts across most of its key segments. Construction remained the core business but its ne...
China Railway Construction Sets 2025 Final Dividend and Cross-Border Distribution Rules
Jul 7, 2026
China Railway Construction Corporation Limited has approved a final cash dividend of RMB0.300 per share for the 2025 financial year, with H shareholders to receive HK$0.3449 per share based on the specified exchange rate. The company will temporar...
China Railway Construction Sets Final 2025 Dividend and Clarifies Tax Rules for Hong Kong Investors
Jul 7, 2026
China Railway Construction Corporation Limited has declared a final ordinary cash dividend of RMB 0.3 per share for the financial year ended 31 December 2025, following shareholder approval on 26 June 2026. For Hong Kong-listed H shares, the divid...
China Railway Construction Shareholders Strongly Back Board at 2025 AGM
Jun 26, 2026
China Railway Construction Corporation Limited reported the voting results of its 2025 annual general meeting held in Beijing on June 26, 2026, where shareholders participated through both on-site and internet voting. The meeting was chaired by ch...
China Railway Construction Updates Final 2025 Dividend Details and Tax Treatment
Jun 4, 2026
China Railway Construction Corporation Limited has updated its announcement on the final dividend for the financial year ended 31 December 2025, confirming a payout of RMB 0.3 per share subject to shareholder approval on 26 June 2026. The dividend...
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.