China Railway Materials Co Ltd
China Railway Materials Co Ltd operates in the transportation infrastructure sector, generating revenue through industrial activities related to railway materials and construction support.
Business. China Railway Materials Co Ltd operates in the transportation infrastructure sector, generating revenue through industrial activities related to railway materials and construction support.
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- Macro
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
- Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
- Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
- Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
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Synthesis
China Railway Materials Co Ltd operates in the transportation infrastructure sector, generating revenue through industrial activities related to railway materials and construction support.
China Railway Materials Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.18 and a current ratio of 1.85, indicating adequate short-term liquidity coverage. The company holds total assets of 20.2 billion CNY against total liabilities of 10.5 billion CNY, resulting in total equity of 9.7 billion CNY. Long-term debt stands at 1.8 billion CNY, which is modest relative to the equity base. However, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting that while leverage is low, cash conversion or working capital management may present constraints. Operating cash flow is 356 million CNY, while free cash flow is 533 million CNY, supported by capital expenditures of -138 million CNY.
Profitability metrics indicate modest returns, with a return on equity (ROE) of 4.88% and a return on assets (ROA) of 2.35%. The company generated net income of 576 million CNY on revenue of 34.3 billion CNY, resulting in a net margin of approximately 1.68%. Gross profit was 2.0 billion CNY, yielding a gross margin of roughly 5.9%, while operating income was 754 million CNY, indicating an operating margin of about 2.2%. These margins are characteristic of capital-intensive infrastructure and materials businesses where volume drives revenue but compresses profitability. The valuation multiples reflect this profile, with a price-to-earnings ratio of 30.04 and an EV/EBITDA of 22.85, which are elevated relative to the low returns on capital. The price-to-book ratio is 1.47, and the EV-to-revenue ratio is 0.44, suggesting the market values the company primarily on its asset base and revenue scale rather than current earnings power.
- The company exhibits low leverage with a debt-to-equity ratio of 0.18 but faces medium liquidity risk due to negative net cash after debt.
- Profitability is modest with an ROE of 4.88% and ROA of 2.35%, reflecting the capital-intensive nature of the transportation infrastructure industry.
- Valuation multiples are elevated, with a P/E of 30.04 and EV/EBITDA of 22.85, suggesting the market prices in future growth or asset value beyond current earnings.
- Dilution risk is low, with no difference between basic and diluted shares outstanding, indicating stable equity structure.
- Absence of segment and historical data limits the ability to assess revenue concentration and growth trends, requiring reliance on consolidated metrics.
Bull / Bear case
Generated · model-assistedRevenue grew 18.2% year-over-year to CNY 45.1 billion, demonstrating strong top-line expansion momentum in the latest period.
Net income surged 24.4% year-over-year to CNY 571 million, outpacing revenue growth and indicating improving profitability efficiency.
The company maintains a conservative debt-to-equity ratio of 0.18, significantly below the cohort median of 0.40.
Long-term debt decreased substantially to CNY 1.78 billion in the most recent period, reducing leverage and interest obligations.
Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value from share issuance.
Return on equity of 4.9% trails the cohort median of 7.9%, reflecting inefficient capital deployment relative to peers.
In focus — financials by report
Revenue ¥55.20B, −6,7% YoY; Operating income −22,6% YoY.
- ▍Revenue ¥55.20B, −6,7% YoY
- ▍Operating income −22,6% YoY
- ▍Net income −27,4% YoY
- ▍Free cash flow +15,1% YoY
- ▍Net margin 1.3%
Revenue ¥59.14B; Operating income ¥1.37B.
- ▍Revenue ¥59.14B
- ▍Operating income ¥1.37B
- ▍Net margin 1.7%
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- Net cash is negative after subtracting total debt.
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Physical assets
8 tracked| Asset | Type | Commodity | Country | Role |
|---|---|---|---|---|
| Cangzhou China Railway Equipment Manufacture Material Co Ltd | Steel plant | Steel | China | Parent |
| Cangzhou China Railway Equipment Manufacture Material Co Ltd. power project | Power | Oil & Gas | China | Parent |
| Cangzhou China Railway Equipment Manufacture Material Co Ltd. power project | Power | Power | China | Parent |
| Cangzhou China Railway Equipment Manufacture Material Co Ltd. power project | Power | Oil & Gas | China | Parent |
| Cangzhou China Railway Equipment Manufacture Material Co Ltd. power project | Power | Power | China | Parent |
| Cangzhou China Railway Equipment Manufacture Material Co Ltd. power project | Power | Oil & Gas | China | Parent |
| Cangzhou China Railway Equipment Manufacture Material Co Ltd. power project | Power | Power | China | Parent |
| Hebei Zongheng Group Fengnan Iron and Steel Co Ltd | Steel plant | Steel | China | Parent |
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- China Railway Materials Co Ltd Market data — financials · 2026-07-06