# China Railway Group (601390.SHG)

Canonical: https://gigainvestors.com/s/601390.SHG

Analysis as of: 2026-10-16T07:35:04.139Z. Financial observations: FY2004–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 4.31 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.03×

- FY2017: 0.03×

- FY2018: 0.04×

- FY2019: 0.04×

- FY2020: 0.03×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.03×

- FY2025: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.8%

- ROIC, second-lowest year: 6.2%

- Typical minus recent gross margin: 0.3 pp

- Typical gross margin (annual median): 9.9%

- Recent gross margin (lower of latest and 3-year median): 9.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 0.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.8%

- FY2017: 7.5%

- FY2018: 8.6%

- FY2019: 9.3%

- FY2020: 8.7%

- FY2021: 8.2%

- FY2022: 8.0%

- FY2023: 7.5%

- FY2024: 5.5%

- FY2025: 6.2%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: -0.33×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY -47B

- Net income, five-year total: CNY 143B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.8 pp

- Working capital / revenue, change between three-year averages: -6.6 pp

- Working capital / revenue, final three-year average: 5.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.39×

- FY2022: -0.30×

- FY2023: 0.01×

- FY2024: -0.50×

- FY2025: -0.56×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.5% vs 6.2%

- Per-share earnings: 0.55 to 1.08 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.2%

- Ordinary dilution, 5-year annual growth: 1.7%

- Market cap gain: CNY -56B

- Cumulative retained earnings: CNY 156B

- Diluted shares, 10-year annual growth: 1.2%

- Diluted shares, 5-year annual growth: 1.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.9%

- Per-share value change: CNY 0.54

- Per-share value, starting three-year median: CNY 0.55

- Per-share value, ending three-year median: CNY 1.08

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 270B

- Cumulative net income, 10 years: CNY 238B

- ROIC, first three-year median: 7.5%

- ROIC, last three-year median: 6.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.55

- FY2017: CNY 0.69

- FY2018: CNY 0.83

- FY2019: CNY 1.02

- FY2020: CNY 1.02

- FY2021: CNY 1.10

- FY2022: CNY 1.20

- FY2023: CNY 1.29

- FY2024: CNY 1.08

- FY2025: CNY 0.85

### accounting: pass

- Sloan accruals: -0.2%

- Receivables to sales index (DSRI): 0.49×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.81×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.6%

- FY2017: -2.0%

- FY2018: 0.6%

- FY2019: 0.1%

- FY2020: -0.5%

- FY2021: 1.1%

- FY2022: -0.8%

- FY2023: -0.3%

- FY2024: -0.0%

- FY2025: -0.2%

## Holders

## Price story

Down 54% since Apr 2023 · sales -5.8%

Story as of 2026-10-16T10:00:03.505Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -5.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 643B 

- FY2017: CNY 693B 

- FY2018: CNY 740B 

- FY2019: CNY 851B 

- FY2020: CNY 975B 

- FY2021: CNY 1.07T 

- FY2022: CNY 1.15T 

- FY2023: CNY 1.26T 

- FY2024: CNY 1.16T 

- FY2025: CNY 1.09T 

### Gross margin · FY2025

gross margin 9.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 9.0% 

- FY2017: 9.9% 

- FY2018: 9.7% 

- FY2019: 9.9% 

- FY2020: 9.8% 

- FY2021: 10.1% 

- FY2022: 10.0% 

- FY2023: 10.3% 

- FY2024: 10.1% 

- FY2025: 9.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are CNY 1.1 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2025: revenue 1093493631000; grossProfit 104719782000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601390.SHG: China Railway Group Limited, together with its subsidiaries, engages in the construction and engineering contractor business in China and internationally. The company operates through six segments: Engineering Construction; Design Consulting; Equipment Manufacturing; Specialty Real Estate; Asset Management; and Resource Utilization. It constructs railways, highways, bridges, tunnels, urban rail transits, stations and buildings, municipal facilities, and other projects; offers consulting and planning, feasibility study, survey and design, research and development, and construction supervision of railways, highways, and municipal facilities and others; and manufactures steel structure, switch, and other mechanical products, as well as shield machines and back-up equipment, electrified equipment, and railway construction machinery. The company also develops residential, commercial, tourism, and pension real estate, as well as urban complexes; engages in the operation, maintenance, management, and asset management of infrastructure investment projects; and operates mining and provides mineral products, including concentrates of copper, cobalt, molybdenum, lead, and zinc, as well as cathode copper and cobalt hydroxide. In addition, it is involved in financial trust and management; financial services; capital investment; commodity trade; software and information technology services; talent information network services; and franchise operation. The company was founded in 1950 and is headquartered in Beijing, China.

### Why customers stay

Margins ranged from 9.6% to 10.3% during 2023–25; it earns 7.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2023: grossProfit / revenue = 10.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2024: grossProfit / revenue = 10.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2025: grossProfit / revenue = 9.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); 10-year return on capital observations [[2016,0.06750436328765849],[2017,0.07484455892706779],[2018,0.08565174541462672],[2019,0.09269210881593117],[2020,0.08689982793330642],[2021,0.08203869918614268],[2022,0.08014522477670845],[2023,0.07507887748673737],[2024,0.05450901558236495],[2025,0.062183724761922396]]; median 0.07761205113172291. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 10% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); Gross margin observations: [[2021,0.10116285230564515],[2022,0.09961039815350534],[2023,0.10286286517651684]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2016: growth capex 1586511544.5722885; upkeep 11202280455.427711; owner earnings 10525956544.572289. Growth capex / owner earnings = 0.15072374067422628.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2017: growth capex 4119533408.620756; upkeep 11155770591.379244; owner earnings 14074227408.620756. Growth capex / owner earnings = 0.29270050063973363.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2018: growth capex 3947088782.736906; upkeep 15033553217.263094; owner earnings 11508584782.736906. Growth capex / owner earnings = 0.34296908414469984.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2019: growth capex 9293294458.700743; upkeep 10954509541.299257; owner earnings 22715703458.700745. Growth capex / owner earnings = 0.4091132143715828.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2020: growth capex 10218470655.343075; upkeep 33072496344.656925; owner earnings 1598095655.3430748. Growth capex / owner earnings = 6.394154580909239.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); FY2023: growth capex 9553564792.846199; upkeep 48892158207.1538; owner earnings 299825262.32061005. Growth capex / owner earnings = 31.863775316672125.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); Dividend observations: [[2016,11103664000],[2017,10488676000],[2018,11699611000],[2019,2924071000],[2020,4152487000],[2021,4422767000],[2022,20816978000],[2023,23142357000],[2024,21919053000],[2025,24353475000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 61.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601390.SHG SharesStats.PercentInsiders = 61.803 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.1 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.139Z); Closing price 4.31 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 40.50736631908286; price multiple 0.10640040051109359. FY2025 cash earnings/share -0.47140396178809596. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 8.41 per share

- 2016-11: CNY 9.80 per share

- 2016-12: CNY 8.86 per share

- 2017-01: CNY 8.86 per share

- 2017-02: CNY 9.04 per share

- 2017-03: CNY 8.81 per share

- 2017-04: CNY 8.78 per share

- 2017-05: CNY 8.91 per share

- 2017-06: CNY 8.67 per share

- 2017-07: CNY 8.86 per share

- 2017-08: CNY 8.81 per share

- 2017-09: CNY 8.65 per share

- 2017-10: CNY 8.95 per share

- 2017-11: CNY 8.65 per share

- 2017-12: CNY 8.39 per share

- 2018-01: CNY 8.49 per share

- 2018-02: CNY 7.62 per share

- 2018-03: CNY 7.37 per share

- 2018-04: CNY 7.40 per share

- 2018-05: CNY 7.47 per share

- 2018-06: CNY 7.47 per share

- 2018-07: CNY 7.47 per share

- 2018-08: CNY 7.18 per share

- 2018-09: CNY 7.77 per share

- 2018-10: CNY 7.39 per share

- 2018-11: CNY 7.18 per share

- 2018-12: CNY 6.99 per share

- 2019-01: CNY 6.69 per share

- 2019-02: CNY 7.36 per share

- 2019-03: CNY 7.27 per share

- 2019-04: CNY 7.00 per share

- 2019-05: CNY 6.43 per share

- 2019-06: CNY 6.52 per share

- 2019-07: CNY 6.36 per share

- 2019-08: CNY 6.01 per share

- 2019-09: CNY 6.00 per share

- 2019-10: CNY 5.76 per share

- 2019-11: CNY 5.65 per share

- 2019-12: CNY 5.94 per share

- 2020-01: CNY 5.56 per share

- 2020-02: CNY 5.37 per share

- 2020-03: CNY 5.38 per share

- 2020-04: CNY 5.86 per share

- 2020-05: CNY 5.25 per share

- 2020-06: CNY 5.02 per share

- 2020-07: CNY 5.57 per share

- 2020-08: CNY 5.60 per share

- 2020-09: CNY 5.39 per share

- 2020-10: CNY 5.37 per share

- 2020-11: CNY 5.65 per share

- 2020-12: CNY 5.27 per share

- 2021-01: CNY 5.29 per share

- 2021-02: CNY 5.71 per share

- 2021-03: CNY 5.91 per share

- 2021-04: CNY 5.39 per share

- 2021-05: CNY 5.39 per share

- 2021-06: CNY 5.24 per share

- 2021-07: CNY 5.27 per share

- 2021-08: CNY 5.63 per share

- 2021-09: CNY 5.66 per share

- 2021-10: CNY 5.25 per share

- 2021-11: CNY 5.30 per share

- 2021-12: CNY 5.79 per share

- 2022-01: CNY 6.22 per share

- 2022-02: CNY 6.21 per share

- 2022-03: CNY 6.03 per share

- 2022-04: CNY 7.08 per share

- 2022-05: CNY 6.57 per share

- 2022-06: CNY 6.14 per share

- 2022-07: CNY 5.78 per share

- 2022-08: CNY 5.75 per share

- 2022-09: CNY 5.23 per share

- 2022-10: CNY 4.99 per share

- 2022-11: CNY 5.88 per share

- 2022-12: CNY 5.56 per share

- 2023-01: CNY 5.70 per share

- 2023-02: CNY 6.04 per share

- 2023-03: CNY 6.88 per share

- 2023-04: CNY 9.29 per share

- 2023-05: CNY 7.89 per share

- 2023-06: CNY 7.58 per share

- 2023-07: CNY 8.03 per share

- 2023-08: CNY 6.70 per share

- 2023-09: CNY 6.82 per share

- 2023-10: CNY 6.05 per share

- 2023-11: CNY 5.64 per share

- 2023-12: CNY 5.68 per share

- 2024-01: CNY 6.31 per share

- 2024-02: CNY 6.35 per share

- 2024-03: CNY 7.01 per share

- 2024-04: CNY 6.57 per share

- 2024-05: CNY 6.58 per share

- 2024-06: CNY 6.52 per share

- 2024-07: CNY 6.22 per share

- 2024-08: CNY 5.76 per share

- 2024-09: CNY 6.57 per share

- 2024-10: CNY 6.41 per share

- 2024-11: CNY 6.41 per share

- 2024-12: CNY 6.39 per share

- 2025-01: CNY 5.92 per share

- 2025-02: CNY 5.91 per share

- 2025-03: CNY 5.53 per share

- 2025-04: CNY 5.52 per share

- 2025-05: CNY 5.59 per share

- 2025-06: CNY 5.61 per share

- 2025-07: CNY 5.69 per share

- 2025-08: CNY 5.68 per share

- 2025-09: CNY 5.51 per share

- 2025-10: CNY 5.62 per share

- 2025-11: CNY 5.43 per share

- 2025-12: CNY 5.41 per share

- 2026-01: CNY 5.70 per share

- 2026-02: CNY 6.30 per share

- 2026-03: CNY 5.43 per share

- 2026-04: CNY 5.08 per share

- 2026-05: CNY 4.77 per share

- 2026-06: CNY 4.17 per share

- 2026-07: CNY 4.61 per share

- 2026-08: CNY 4.38 per share

- 2026-09: CNY 4.33 per share

- 2026-10: CNY 4.34 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 11.17 per share, central CNY 13.86 per share, high CNY 15.42 per share

- FY2017: low CNY 10.51 per share, central CNY 11.26 per share, high CNY 12.25 per share

- FY2018: low CNY 13.89 per share, central CNY 17.28 per share, high CNY 19.26 per share

- FY2019: low CNY 14.39 per share, central CNY 17.73 per share, high CNY 19.72 per share

- FY2020: low CNY 13.51 per share, central CNY 14.48 per share, high CNY 15.77 per share

- FY2021: low CNY 15.26 per share, central CNY 18.61 per share, high CNY 20.69 per share

- FY2022: low CNY 8.66 per share, central CNY 8.98 per share, high CNY 9.19 per share

- FY2023: low CNY 7.61 per share, central CNY 7.63 per share, high CNY 7.65 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations