China Railway Const, 1H gearing ratio 74%

China Railway Const, 1H gearing ratio 74%

July 02, 2025 — China Railway Construction (CRC), one of the leading players in China's construction sector, has reported its first-half 2025 gear ratio at 74%. This ratio, which measures the company's leverage, indicates a significant financial health status.

The gear ratio of 74% suggests that for every dollar of equity, CRC has $0.74 in debt. This ratio is an important metric for investors as it provides insight into the company's financial risk and its ability to manage debt. A higher gear ratio indicates higher leverage, which can amplify both gains and losses.

China's construction market, valued at USD 4.80 trillion in 2024, is projected to grow at a CAGR of 6.00% between 2025 and 2034, reaching USD 8.60 trillion by 2034 [1]. This growth is driven by factors such as urbanization, infrastructure projects, and advanced technologies like Building Information Modelling (BIM). CRC, being a key player, is expected to benefit from these growth drivers.

CRC's strong financial position is supported by its diversified portfolio, which includes projects in various sectors such as transportation networks, residential and commercial real estate, and infrastructure development. The company's focus on sustainable construction practices and advanced technologies has also contributed to its robust financial health.

Investors should closely monitor CRC's financial performance in the coming quarters to assess its ability to manage debt and capitalize on the growing construction market. The company's gear ratio is a crucial indicator of its financial stability and risk profile.

References:

[1] https://finance.yahoo.com/news/china-construction-industry-report-2025-141900584.html