China Railway Construction (01186) Morning Session Slides Nearly 5% as Expense Ratio Drags Performance; Q3 Net Profit Falls 84% Quarter-on-Quarter

Stock News11-02 10:16

China Railway Construction (01186) dropped nearly 5% in morning trading. As of press time, shares were down 4.27% at HK$4.04, with turnover of HK$32.5808 million.

On the news front, China Railway Construction announced that revenue for the first three quarters was RMB 639.447 billion, down 12.21% year-on-year; net profit attributable to shareholders was RMB 9.348 billion, down 36.88% year-on-year. In the third quarter, the company's revenue was RMB 211.009 billion, down 11.79% year-on-year; net profit attributable to shareholders was RMB 658 million, down 83.98% year-on-year and down 84% quarter-on-quarter.

Huatai Securities noted that China Railway Construction achieved revenue of RMB 211.009 billion in the third quarter, with net profit attributable to shareholders of RMB 658 million, below our expectations, mainly due to exchange losses and increased interest-bearing liabilities that drove financial expenses higher than anticipated. We believe the company is focused on high-quality development and is expected to be among the first to absorb the pressure in the future, maintaining a "Buy" rating for both A-shares and H-shares.

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