Revenue growth for China Railway Construction

Revenues at China Railway Construction were up +10.9% in the first half of the year to CNY 262 billion (US$ 42.6 billion). The contractor’s net profit was up +2/3% to CNY 4.65 billion (US$ 755 million for a 1.8% margin.

The company’s order intake over the first half of 2014 was CNY 390 billion (US$ 63.4 billion). China Railway Construction said this was just under 51% of its target for the year, and a +13.3% increase on the value of work won over the same period last year. The company’s backlog as of the end of June 2014 stood at CNY 1,798 trillion (US$ 292 billion).

Commenting on the results, a statement from the contractor said, “The overall infrastructure market was relatively stable from the beginning of this year, while the real estate market cooled evidently. It is expected that in the second half of this year, commencement of new railway projects will increase to a large extent.”

It added that over the second half of the year, it planned to further expand its operations in China outside the core business of rail and other infrastructure construction work.

China Railway Construction was ranked as the second largest contractor in the world in the 2014 edition of iC’s Top 200 league table. Its revenues last year of US£ 93.1 billion put it behind domestic rival China State Construction & Engineering (CSCEC) which did US$ 108 billion of construction work in 2013.