China Railway Construction-H (1186) fair value: what the stock is really worth
As of Sep 30, 2026: fair value of China Railway Construction-H HK$13.07, price HK$4.36, upside +200.0%, quality 36 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? No
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China Railway Construction-H
1186 · HKCheap, value-trap riskThe stock looks deeply undervalued, but low quality raises value-trap risk.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 1, 2026.
How to read this chart
60‑month range HK$2.90 – HK$6.17 · fair‑value band HK$11.17 – HK$15.77 · the HK$4.36 price screens below the HK$13.07 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 1, 2026.
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Company profile
China Railway Construction Corporation Limited, together with its subsidiaries, engages in the construction business in Mainland China and internationally. It operates through five segments: Construction Operations; Planning, Design and Consultancy Operations; Manufacturing operations; Real Estate Development Operations; and Other Business Operations.
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China Railway Construction Corporation Limited, together with its subsidiaries, engages in the construction business in Mainland China and internationally. It operates through five segments: Construction Operations; Planning, Design and Consultancy Operations; Manufacturing operations; Real Estate Development Operations; and Other Business Operations. The Construction Operations segment engages in the construction of infrastructure, such as railways, highways, rail transits, water conservancy and hydropower, housing construction, municipal engineering, bridges, tunnels, airports, and wharves. The Plan, Design and Consultancy Operations segment provides planning, design, and consultancy services for civil engineering and infrastructure construction projects, such as railways, highways, urban rail transport, etc. The Manufacturing Operations segment is involved in the research and development, production, and sale of mechanical equipment comprising railway track maintenance and tunnel boring machinery, as well as manufacturing of track systems, etc. The Real Estate Development Operations segment engages in the development, construction, and sale of residential and commercial properties. The Other Business Operations segment includes trade and logistics, finance and insurance, and highway operation activities. In addition, it is involved in the purchase and sales of goods and materials; and offers project investment and financial services. The company was founded in 1948 and is headquartered in Beijing, the People's Republic of China. China Railway Construction Corporation Limited is a subsidiary of China Railway Construction Corporation Group.
Stock analysis
China Railway Construction-H (1186) currently trades at HK$4.36, while our model-based Fair Value estimate is HK$13.07, implying the stock looks roughly 66.7% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of HK$33.18 per share, and 14 of the 14 models we run sit above the HK$4.36 price.
Bear case: the Earnings-Based group reads lowest at HK$12.84, and 0 of the 14 models stay below the price. Evidence for this calculation is low.
Scenario range: HK$11.17 (bear) to HK$15.77 (bull), the price of HK$4.36 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 36/100 (below-average quality), in the Industrials sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
China Railway Construction-H reported revenue of 1.0T CNY in FY2025 versus 1.0T CNY in FY2021, a compound +0.2%/yr. Reported net income was 18.4B CNY in FY2025, compounding −7.1%/yr from FY2021.
Key figures
Market cap HK$59.1B (≈ $7.5B) · P/E ratio 3.6 · P/S ratio 0.06 · EPS (TTM) HK$1.08 · Dividend yield 6.9% · Net margin 1.8% · Return on equity 4.3% · Return on assets (EBIT) 2.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 18% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −34% fair-value upside, at 200%, 1186 screens cheaper than that median.
Fair Value models
All 14 models by family
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Set up alert →Quality Score breakdown
Of which business quality 34 · Market factors (momentum, volatility) 47
Revenue & earnings trend
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Compare China Railway Construction-H with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Engineering & Construction · 803 stocks
Valuation Multiplesvs Engineering & Construction median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Industrials sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Industrials
- Undervalued stocks: Hong Kong Stocks
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Quanta Services, Inc PWR | $649.13 | $162.77 | −75% |
| Vinci SA DG | €111.30 | €186.22 | +67% |
| Comfort Systems USA, Inc FIX | $1,658 | $1,116 | −33% |
| Larsen & Toubro Limited LT | ₹3,876 | ₹1,994 | −49% |
| Samsung C&T Corporation 028260 | 367,000 KRW | 159,718 KRW | −56% |
| Ferrovial N.V FER | $55.77 | $21.74 | −61% |
| HOCHTIEF Aktiengesellschaft HOT | €397.20 | €203.86 | −49% |
| EMCOR Group EME | $762.21 | $525.05 | −31% |
| ACS, Actividades de Construcción y Servicios, S.A ACS | €93.60 | €62.20 | −34% |
| Bouygues SA EN | €43.14 | €66.31 | +54% |
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Key figures of China Railway Construction-H
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