Ratings China Railway Group Limited

Equities

601390

CNE100000866

End-of-day quote Shanghai S.E. Other stock markets 06:00:00 2024-04-24 pm EDT			5-day change	1st Jan Change
6.94 ^CNY	+0.43%		-3.88%	+22.18%

05:43am	China Railway Special Cargo Logistics' 2023 Profit Jumps 50%	MT
05:23am	China Railway Special Cargo Logistics' Profit Jumps 92% in Q1 2024	MT

Summary

The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
The company presents an interesting fundamental situation from a short-term investment perspective.

Strengths

Its low valuation, with P/E ratio at 4.73 and 4.26 for the ongoing fiscal year and 2025 respectively, makes the stock pretty attractive with regard to earnings multiples.
The stock, which is currently worth 2024 to 0.32 times its sales, is clearly overvalued in comparison with peers.
The company's share price in relation to its net book value makes it look relatively cheap.
Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
The opinion of analysts covering the stock has improved over the past four months.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

Weaknesses

The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
The company does not generate enough profits, which is an alarming weak point.
The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
The group usually releases earnings worse than estimated.

Ratings chart - Surperformance

Chart ESG Refinitiv

Sector: Construction & Engineering

	1st Jan change	Capi.	ESG Refinitiv
CHINA RAILWAY GROUP LIMITED	+22.18%	21.89B	B-
VINCI	-2.33%	67.32B	C+
LARSEN & TOUBRO LIMITED	+2.13%	60.23B	C+
QUANTA SERVICES, INC.	+18.25%	37.36B	B+
CHINA STATE CONSTRUCTION ENGINEERING CORPORATION LIMITED	+9.98%	30.39B	B
FERROVIAL SE	+1.39%	26.44B	A-
WSP GLOBAL INC.	+15.03%	19.45B	A
CHINA COMMUNICATIONS CONSTRUCTION COMPANY LIMITED	+22.99%	17.3B	B+
EMCOR GROUP, INC.	+62.16%	16.42B	B
CHINA RAILWAY CONSTRUCTION CORPORATION LIMITED	+12.48%	14.92B	B

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

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Consensus

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12m Revision of opinion

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