China Railway Construction Corporation Limited - Company Profile and SWOT Analysis by WMIntelligence

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									China Railway Construction Corporation Limited

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China Railway Construction                                                     Financial Snapshot

Corporation Limited                                                            Operating Performance

Fast Facts                                                                     The company reported revenue of US$76,875 million
                                                                               during the fiscal year 2012 (2012). The company's
                                                                               revenue grew at a CAGR of 25.01% during 2008–
Headquarters Address               No. 40 Fuxing Road, Beijing, 100855,China
                                                                               2012, with an annual growth of 8.41% over 2011. In
                                                                               2012, the company recorded an operating margin of
Telephone                          + 86 10 52688600
                                                                               2.21%, as against 2.17% in 2011.
Fax                                + 86 10 52688302
                                                                               Revenue and Margins
Website                            www.crcc.cn

                                   1186, Hong Kong Stock Exchange601186 ,
Ticker Symbol, Stock Exchange
                                   Shanghai Stock Exchange

Number of Employees                241,621

Fiscal Year End                    December

Revenue (in US$ million)           76,875




SWOT Analysis                                                                  Return on Equity

Strengths                          Weaknesses                                  The company recorded a return on equity (ROE) of
                                                                               11.78% for 2012, as compared to its peers, China
Broad portfolio of services        Limited financial leverage                  State Construction Engineering Corporation Ltd.
                                                                               (Ticker:     601668),    China   Communications
                                                                               Construction Company Limited (Ticker: 1800) and
Strong market position             Limited liquidity position                  Sinohydro Group, Ltd. (Ticker: 601669), which
                                                                               recorded ROEs of 15.45%, 14.12% and 13.24%
Strong operating performance                                                   respectively. The company reported an operating
                                                                               margin of 2.21% in 2012.
Opportunities                      Threats
                                                                               Return on Equity
New contract wins                  Rising labor costs in China

Positive outlook for Chinese       Risks related to competitive bidding by
construction industry              other companies

Rapid urbanization in China        Volatile input prices




                                                                               Liquidity Position

                                                                               The company reported a current ratio of 1.13 in 2012,
                                                                               as compared to its peers, China State Construction
                                                                               Engineering Corporation Ltd., China Communications
                                                                               Construction Company Limited and Sinohydro Group,
                                                                               Ltd., which recorded current ratios of 1.35, 1.07 and
                                                                               1.17 respectively. As of December 2012, the
                                                                               company recorded cash and short-term investments
                                                                               of worth US$14,665 million, against US$5,025 million
                                                                               current debt. The company reported a debt to equity
                                                                               ratio of 1.46 in 2012 as compared to its peers, China
                                                                               State Construction Engineering Corporation Ltd.,
                                                                               China Communications Construction Company
                                                                               Limited and Sinohydro Group, Ltd., which recorded
                                                                               debt to equity ratios of 1.76, 1.66 and 2.45
                                                                               respectively.



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China Railway Construction Corporation Limited -                                                                      Page 1
SWOT Profile
China Railway Construction Corporation Limited

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................6
    1.3       Major Products and Services .................................................................................................................................7
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
    2.2       Key Financial Performance Indicators .................................................................................................................11
      2.2.1       Revenue and Operating Profit .........................................................................................................................11
      2.2.2       Asset and Liabilities .........................................................................................................................................12
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................13
      2.2.4       Operational Efficiency ......................................................................................................................................14
      2.2.5       Solvency ..........................................................................................................................................................15
      2.2.6       Valuation ..........................................................................................................................................................16
    2.3       Key Competitors ...................................................................................................................................................17
3     Mergers & Acquisitions and Partnerships ........................................................................................... 18
    3.1       M&A and Partnerships Strategy ...........................................................................................................................18
4     SWOT Analysis ...................................................................................................................................... 19
    4.1       SWOT Analysis - Overview ..................................................................................................................................19
    4.2       Strengths ..............................................................................................................................................................19
    4.3       Weaknesses .........................................................................................................................................................19
    4.4       Opportunities ........................................................................................................................................................20
    4.5       Threats .................................................................................................................................................................20
5     Company Statement .............................................................................................................................. 22
6     History .................................................................................................................................................... 24
7     Key Employees ...................................................................................................................................... 25
8     Key Employee Biographies................................................................................................................... 26
9     Locations and Subsidiaries .................................................................................................................. 27
    9.1       Head Office ..........................................................................................................................................................27
    9.2       Other Locations and Subsidiaries ........................................................................................................................27
10    Appendix ................................................................................................................................................ 29
    10.1      Methodology .........................................................................................................................................................29
    10.2      Ratio Definitions ...................................................................................................................................................29
    10.3      Disclaimer.............................................................................................................................................................33




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China Railway Construction Corporation Limited -                                                                                                                            Page 2
SWOT Profile
China Railway Construction Corporation Limited

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List of Tables

Table 1: Major Products and Services....................................................................................................................................7
Table 2: Key Ratios - Annual ..................................................................................................................................................8
Table 3: Key Ratios - Interim ................................................................................................................................................10
Table 4: Key Capital Market Indicators ................................................................................................................................10
Table 5: History.....................................................................................................................................................................24
Table 6: Key Employees .......................................................................................................................................................25
Table 7: Key Employee Biographies ....................................................................................................................................26
Table 8: Subsidiaries ....................................................................................................................................................
								
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