[photopress:logistics_rail_in_Afghanistan.jpg,full,alignright]China Railway Group raised RMB22.44 billion (US$3 billion) after attracting a record subscription for a mainland initial public offering. The Beijing-based construction contractor is expected to benefit from China’s rapid expansion in railway, and other transport infrastructure such as roads and bridges. The government has said China plans to spend RMB1.25 trillion in railway construction during the five years through 2010.
A Guodu Securities Co report said, ‘China Railway has very few competitors in its industry domestically. It has absolute advantage in winning contracts for those large projects which could net higher profit margins.’
China Railway’s IPO price is 26.7 times its estimated 2007 earnings, based on domestic accounting standards.
China Railway is the world’s third largest construction firm and Asia’s largest. The firm’s other revenue sources include engineering equipment manufacture, construction design and consulting, real estate development and mining.
It work in some very difficult places.
Our illustration shows a worker from China Railway at a construction site of the Jalalabad-Sarobi road, suburb of the eastern Afghan city Jalalabad. Armed guards were needed.
Source: Shanghai Daily
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