China Railway Group equity, debt and subsidiaries

Accuracy score :
97%

Summary (from the latest annual and quarterly report)

  • Total equity: 33.4 billion USD
  • Market Cap is 18.99 billion USD ( the last price of the stock is 17.09 USD)
  • China Railway Group Limited (known as CREC) is a world-leading construction conglomerate with more than 120 years history. As one of the world’s largest construction and engineering contractors, CREC takes a leading position in infrastructure construction, industrial equipment manufacturing, scientific research and consulting, real estate development, resources development, financial trust, trade and other fields
  • Total stockholders' equity has increased from 26.2 billion USD in 2017 to 33.4 billion in 2019
  • The company has 15.9 billion USD in cash on account (from the latest quarterly report  2019)
  • Total equity – cash on account = 33.4 billion USD – 15.9 billion USD = 17.5 billion USD
  • In 2019 the company has 16.15 billion USD long-term debt, short – term debt is 13.5 billion USD
  • (In 2017 the company had 12.8 billion USD long-term debt, short-term debt was 8 billion USD)
  • The company's revenue has increased in 2018 to 106.7 billion USD from 105.7 billion in 2017
  • Net income in 2018 was 2.5 billion USD, Net income in 2017 was 2.46 billion USD
  • In 2018 the company paid 360 million USD dividend to its shareholders

 

Opinion about the company

Fundamentally it is a good company and in the future, we can expect its growth (Total debt is 29.65 billion USD, big amount of cash on company's account, ROE is around 10 %).

China Railway Group Limited (known as CREC) is a world-leading construction conglomerate with more than 120 years history. As one of the world’s largest construction and engineering contractors, CREC takes a leading position in infrastructure construction, industrial equipment manufacturing, scientific research and consulting, real estate development, resources development, financial trust, trade and other fields. Over the decades, the Company has built more than 2/3 of China’s national railway network, 90% of China’s electrified railways, 1/8 of the national expressways and 3/5 of the urban rail transit system. China Railway Group provides a full-chained service with its business scope covering almost all fields of infrastructures, such as railways, highways, municipal facilities, housing and buildings, urban rail transits, water conservancies, hydropower stations, airports, harbors, docks, etc. In addition, China Railway Group implements a diversified development strategy, and gains lots of achievements in survey and design, consulting, equipment and component manufacturing, real estate development, mineral resources development, highway operation and financing, etc.

China Railway Group with its outstanding technical and managerial advantages, has accumulated rich experiences in the design and construction of large-scale bridge, deep-water bridge, long and large-diameter tunnel, railway electrification, car testing track as well as the research and manufacturing of bridge steel structure, shielding machine and high-speed railway turnout. Currently, the Company has achieved world advanced level in bridge construction, and holds a leading position in tunnel and subway construction in China, and represents the highest technical standard in China’s railway electrification. The Company currently operates in more than 90 countries and regions around the world and has more than 70,000 professionals and over 50,000 high-level skilled technicians within the total number of 290,000 employees of the Company.

 

  • Infrastructure Construction Business is the main segment of this company
  • In 2018, the value of the Group’s new contracts of infrastructure construction business was RMB1,434.63 billion, representing a year-on-year increase of 5.9%. As at the end of 2018, the value of the Group’s contract backlog of infrastructure construction business was RMB2,686.49 billion, representing an increase of 24.6% from the end of 2017
  • Infrastructure Construction segment represents 87% of total revenues
  • Survey, Design and Consulting Services represent 2% of total revenues
  • Engineering Equipment and Component Manufacturing represent 4% of total revenues
  • Property Development segment represents 6% of total revenues
  • In 2019, the Group plans to achieve total revenue of approximately RMB750 billion, costs of operation of approximately RMB674.6 billion, and four expenses of approximately RMB43.48 billion. It is estimated that the new contracts to be entered into will amount to approximately RMB1,800 billion

 

As one of the largest construction contractors in the world, the Group has always been a leader in China’s infrastructure construction industry. In the domestic market, the Group’s share in the railway’s large and medium-sized infrastructure market has remained above 45%, its share in the urban rail transit infrastructure market is over 40%, and its share in the expressway infrastructure market is over 10%.

 

Standalone subsidiaries and acquisitions:

  • Infrastructure Construction Business is the main segment of this company and this segment is worth around 18 billion USD. Revenue from the Group’s infrastructure construction business is mainly derived from the construction of railway, highway, municipal works and other constructions.
  • In the last several years the company has spent more than 8 billion USD on capital expenditure

Total = 26 billion USD

 

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