Core Viewpoint - CICC maintains the profit forecast for Shenzhen International (00152) for 2025 and 2026, with a target price of HKD 9.38, indicating a potential upside of 23.8% from the current stock price [1] Group 1: Financial Performance - The company's 1H25 performance met expectations, with revenue of HKD 6.67 billion, a year-on-year increase of 0.9%, and a net profit of HKD 490 million, down 24.9% year-on-year, primarily due to a one-time tax benefit from the previous year [2] - Revenue from the toll road and environmental protection business remained stable, with toll road revenue at HKD 2.64 billion, essentially flat year-on-year, while the environmental protection business saw a 2% increase to HKD 810 million, achieving a net profit of HKD 95.32 million [3] Group 2: Business Segments - The logistics and port business faced challenges, with logistics park revenue up 5% to HKD 790 million, but net profit down 90% to HKD 55.91 million due to high base effects from the previous year [3] - Port revenue decreased by 13% to HKD 1.39 billion, with net profit down 72% to HKD 1.204 million, attributed to slowing market demand and increased competition [3] Group 3: Future Outlook - The logistics park's closed-loop model is expected to continue contributing to performance, with projected tax-adjusted gains of HKD 2.367 billion from the first phase of the South China logistics park [4] - The company aims to enhance cash flow through public REIT expansions and private fund issuances, leveraging asset appreciation [4] Group 4: Dividend Policy - The company has a stable dividend policy, with an average payout ratio of 51% over the past five years, leading to an attractive dividend yield of 9.7% for 2025/2026 based on profit forecasts [5]

Core Viewpoint - CICC maintains the profit forecast for Shenzhen International (00152) for 2025 and 2026, with a target price of HKD 9.38, indicating a potential upside of 23.8% from the current stock price [1] Financial Performance - The company reported 1H25 revenue of HKD 6.67 billion, a year-on-year increase of 0.9%, and a net profit attributable to shareholders of HKD 490 million, down 24.9%, aligning with CICC's expectations [2] - The decline in net profit is primarily due to a one-time tax benefit of approximately HKD 587 million recognized in the same period last year [2] Business Segment Analysis - **Toll Roads and Environmental Protection**: - 1H25 toll road revenue was HKD 2.64 billion, roughly flat year-on-year, but up 4% after excluding one-off impacts, driven by revenue growth from Jiangjiang Expressway and Jihe Expressway [3] - Environmental protection revenue increased by 2% to HKD 810 million, achieving a net profit of HKD 95.32 million [3] - **Logistics and Port Operations**: - Logistics park revenue rose by 5% to HKD 790 million, but net profit attributable to shareholders fell by 90% to HKD 55.91 million due to high base effects from last year's public REIT issuance [3] - Logistics services revenue surged by 47% to HKD 200 million, with a loss of HKD 47.98 million attributed to structural adjustments and rising operational costs [3] - Port revenue decreased by 13% to HKD 1.39 billion, with net profit down 72% to HKD 1.204 million, impacted by slowing market demand and increased depreciation costs from the Jingjiang Port project [3] - Logistics park transformation generated revenue of HKD 68.74 million, with a profit of HKD 200 million, benefiting from property sales in the Qianhai residential project [3] Future Outlook - The logistics park's large closed-loop model is expected to continue contributing to performance, with anticipated tax-adjusted gains of HKD 2.367 billion from the first phase of the South China logistics park [4] - The transformation of the South China logistics park is projected to gradually release land appreciation and development gains over the next 6-8 years [4] - The company plans to continue promoting public REIT expansions and private fund issuances to achieve cash flow and value appreciation [4] Dividend Policy - The company maintains a stable dividend policy, with an average payout ratio of 51% over the past five years, leading to an attractive dividend yield of 9.7% for 2025/2026 based on a 50% payout assumption [5]

Core Viewpoint - Shenzhen International's stock dropped over 7% following the release of its interim results, reflecting market concerns over its profitability and dividend sustainability [1] Financial Performance - The company reported a revenue of HKD 6.67 billion for the first half of the year, remaining flat compared to the same period last year [1] - Shareholder profit decreased by 25% year-on-year to approximately HKD 490 million, primarily due to the absence of tax income from two logistics port projects that contributed HKD 587 million in the previous year [1] - The company did not declare an interim dividend [1] Market Outlook - Shenwan Hongyuan previously indicated that the transformation and upgrade of logistics parks in South China will continue to enhance performance over the next 6-8 years [1] - The successful securitization of logistics port assets is expected to improve capital recovery, supporting stable growth in company performance [1] - Concerns over the sustainability of dividends have led to a downward adjustment in the company's valuation, but with stable dividends, land appreciation, and successful asset securitization, there is potential for valuation recovery to historical averages [1]

Core Viewpoint - Shenzhen International's stock dropped over 7% following the release of its interim results, reflecting concerns over declining profits and lack of interim dividends [1] Financial Performance - The company reported a revenue of HKD 6.67 billion for the first half of the year, remaining flat compared to the same period last year [1] - Shareholder profit decreased by 25% year-on-year to approximately HKD 490 million, primarily due to the absence of tax income from two logistics port projects that contributed HKD 587 million in the previous year [1] - The company did not declare an interim dividend for this period [1] Future Outlook - Shenwan Hongyuan previously indicated that the transformation and upgrading of logistics parks in South China will continue to drive performance over the next 6-8 years, alongside asset securitization of logistics ports to enhance capital recovery [1] - The market's previous valuation adjustments were mainly due to concerns over the sustainability of dividends; however, with stable dividends, land appreciation, and successful asset securitization, the company is expected to maintain dividends and potentially restore valuations to historical averages [1]

Group 1 - The company, Shenzhen International (00152.HK), reported total revenue of approximately HKD 6.67 billion for the six months ending June 30, 2025, which remained flat compared to the same period last year [1] - The profit attributable to shareholders decreased by 25% year-on-year to approximately HKD 490 million, primarily due to the absence of tax income from two logistics port projects that were included in a fund last year, which generated a post-tax income of about HKD 587 million [1]

Group 1: Financial Performance - Shenzhen International reported a revenue of HKD 6.67 billion for the first half of 2025, representing a year-on-year increase of 0.9% [1] - The profit attributable to shareholders was HKD 490 million, a decrease of 24.9% compared to the same period last year [1] - Basic earnings per share were HKD 0.2 [1] Group 2: Logistics Business - The logistics segment generated revenue of approximately HKD 987 million, up 12% year-on-year, due to the operational contribution from several logistics port projects [1] - The logistics park transformation and upgrade business achieved revenue of about HKD 68.74 million, a 9% increase from the previous year, primarily due to improved leasing conditions in the South China Digital Valley [2] - The profit attributable to shareholders from the logistics business decreased by 98% to approximately HKD 7.93 million due to the absence of income from the "investment, construction, and management" model [1] Group 3: Port and Related Services - Revenue from port and related services fell by 13% to approximately HKD 1.394 billion, mainly due to reduced income from the supply chain business as a result of falling coal prices and overall market demand slowdown [3] - The profit attributable to shareholders from this segment decreased by 72% to approximately HKD 12.04 million, impacted by increased depreciation and amortization costs from new project launches and intensified competition in the domestic port industry [3] Group 4: Infrastructure and Environmental Business - The overall revenue from Shenzhen Expressway Group, a non-wholly owned subsidiary, was approximately HKD 4.22 billion, a 4% increase year-on-year [3] - Net profit for Shenzhen Expressway increased by 21% to approximately HKD 1.114 billion, benefiting from changes in the fair value of financial assets and significantly reduced financial costs [3] - The profit attributable to shareholders from Shenzhen Expressway rose by 12% to approximately HKD 484 million [3]

Core Viewpoint - Shenzhen International (00152) reported a slight increase in revenue for the first half of 2025, but a significant decline in net profit attributable to shareholders, primarily due to the absence of one-time gains from previous logistics projects [1][2]. Financial Performance - Revenue for the first half of 2025 reached HKD 6.67 billion, a year-on-year increase of 0.9% [1]. - Net profit attributable to shareholders was HKD 490 million, a decrease of 24.9% compared to the previous year [1]. - Basic earnings per share were HKD 0.2 [1]. Logistics Business - The logistics segment generated revenue of approximately HKD 987 million, reflecting a 12% increase year-on-year due to the operational contributions from several logistics port projects [1]. - The absence of income from the "investment, construction, and management" model led to a 98% drop in net profit attributable to shareholders in this segment, amounting to approximately HKD 7.93 million [1][2]. Project Development - The company has been focusing on strengthening its logistics core business with a prudent investment strategy, emphasizing high operational efficiency and strong risk resilience [2]. - As of June 30, 2025, the company managed and operated 53 logistics port projects across 41 cities, with a total operational area of approximately 6.71 million square meters and an occupancy rate of about 87% for mature logistics parks [2]. Port and Related Services - Revenue from port and related services decreased by 13% year-on-year to approximately HKD 1.39 billion, attributed to reduced income from the port supply chain due to falling coal prices and overall market demand slowdown [3]. - Net profit attributable to shareholders in this segment fell by 72% to approximately HKD 12.04 million, impacted by increased depreciation and amortization costs from new project launches and intensified competition in the domestic port industry [3]. Toll Road and Environmental Business - The toll road and environmental business, managed by Shenzhen Expressway Group, reported total revenue of approximately HKD 4.22 billion, a 4% increase year-on-year [3]. - Net profit for Shenzhen Expressway increased by 21% year-on-year to approximately HKD 1.11 billion, benefiting from changes in the fair value of financial assets and significantly reduced financial costs [3]. - The company's share of profits from Shenzhen Expressway rose by 12% year-on-year to approximately HKD 484 million [3].

Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 6,669,585, an increase of 0.9% compared to HKD 6,610,182 in 2024[3] - Operating profit decreased to HKD 1,208,879 from HKD 1,685,730, representing a decline of 28.3% year-over-year[3] - Net profit for the period was HKD 1,111,086, down 4.7% from HKD 1,166,093 in the previous year[4] - Basic and diluted earnings per share decreased to HKD 0.20 from HKD 0.27, a decline of 25.9%[4] - Total revenue for the six months ended June 30, 2025, was HKD 6,982,876, a slight increase from HKD 5,913,115 in the same period of 2024, representing a growth of approximately 11.4%[20] - Operating profit for the period was HKD 1,685,730, compared to a loss of HKD 111,695 in the previous year, indicating a significant turnaround[20] - Net profit attributable to equity holders was HKD 490,179, down from HKD 652,695 in the prior year, reflecting a decrease of about 25%[27] - Basic earnings per share for the six months ended June 30, 2025, was HKD 0.20, compared to HKD 0.27 in the same period of 2024, a decline of approximately 25.9%[27] - The profit attributable to ordinary shareholders for the six months ended June 30, 2025, was HKD 490,179,000, a decrease of 25% compared to HKD 652,695,000 for the same period in 2024[29] - The diluted earnings per share for the six months ended June 30, 2025, was HKD 0.20, down from HKD 0.27 in 2024, reflecting a decline of approximately 26%[29] Assets and Liabilities - Total assets increased to HKD 144,273,429 as of June 30, 2025, compared to HKD 135,997,560 at the end of 2024, reflecting a growth of 6.4%[6] - Non-current assets rose to HKD 117,974,306 from HKD 112,251,443, an increase of 5.8%[6] - Total liabilities increased to HKD 84,574,854 from HKD 81,474,402, marking a rise of 3.6%[7] - The company’s equity attributable to ordinary shareholders increased to HKD 33,175,440 from HKD 32,499,739, a rise of 2.1%[7] - As of June 30, 2025, the company reported a current liability exceeding current assets by HKD 7,595,658,000[10] - Total liabilities increased by 4% to HKD 84.58 billion from HKD 81.48 billion[120] - Shareholders' equity rose by 9% to HKD 59.70 billion, up from HKD 54.52 billion[120] - The debt-to-asset ratio decreased by 1 percentage point to 59% compared to the end of 2024[121] - The net debt-to-equity ratio increased by 2 percentage points to 95%, attributed to increased borrowing for investment activities[121] Business Segments - The company is primarily engaged in toll road and environmental protection businesses, as well as logistics operations in China[8] - The company’s major business segments include toll roads and environmental services, and logistics services[16] - Revenue from logistics business was HKD 1,763,023, a decrease from HKD 1,849,801 in the previous year, representing a decline of approximately 4.7%[20] - Revenue from toll roads and environmental services was HKD 4,219,853, an increase from HKD 4,063,314, reflecting a growth of about 3.9%[20] Capital Expenditures - Capital expenditures for the period amounted to HKD 3,453,516,000, indicating ongoing investment in infrastructure and assets[17] - Total capital expenditure for the period was HKD 3,230,131, which includes investments in property, plant, and equipment[20] - The group plans to invest approximately RMB 7.7 billion (equivalent to HKD 8.4 billion) in capital expenditures in the second half of 2025, focusing on logistics park and Shenzhen expressway projects[124] Cash Flow and Financing - The net cash inflow from operating activities was approximately HKD 1.431 billion, while net cash outflow from investing activities was about HKD 7.670 billion, and net cash inflow from financing activities was around HKD 4.855 billion[122] - As of June 30, 2025, the group held cash of approximately HKD 8.687 billion, a decrease of 10% compared to HKD 9.670 billion at the end of 2024, primarily due to payments for investment projects[123] - The total borrowings as of June 30, 2025, amounted to approximately HKD 65.413 billion, an increase of 8% from the end of the previous year, with 30% due within one year, 55% due between two to five years, and 15% due after five years[130] - The group maintained a cash and unused bank credit line of approximately HKD 133.3 billion, ensuring sufficient liquidity to support ongoing operations and business expansion[132] Strategic Initiatives - The company is focusing on high-quality projects in core cities like Shenzhen and Beijing, while advancing digital transformation and sustainable development initiatives[43] - The company is actively exploring the establishment of Pre-REITs private funds to cultivate quality logistics port projects for future asset expansion[61] - The company is implementing a "investment-construction-financing-management" closed-loop business model to optimize capital structure and reduce debt ratios[59] - The company is focusing on technological upgrades in logistics, integrating AI and big data to enhance operational efficiency and service offerings in the logistics sector[67] Environmental and Social Governance - The company is committed to integrating ESG practices into its operations, focusing on green and low-carbon development[119] - The group is committed to deepening strategic cooperation with China International Cargo Airlines to develop a comprehensive logistics system integrating air logistics, high-standard warehousing, and cold chain logistics[111] Market Conditions and Challenges - The company reported a fair value loss of HKD 9,330 on investment properties, compared to a loss of HKD 209,423 in the previous year, indicating an improvement[21] - The revenue from port and related services decreased by 13% year-on-year to approximately HKD 1.394 billion, primarily due to reduced coal prices and overall market demand slowdown[94] - The company is facing significant challenges due to industry competition and price wars, particularly at the Nanjing Xiba Port, which handled approximately 10.86 million tons of throughput in the first half of 2025[86] Logistics and Infrastructure Development - The company has established logistics ports in 35 cities outside Guangdong, with a total operational area of approximately 5.17 million square meters and an occupancy rate of about 86%[53] - The company is advancing the construction of the Shenzhen International Comprehensive Logistics Hub, ensuring high-quality completion as per schedule[116] - The company has established railway freight channels connecting major economic regions, achieving a domestic train dispatch volume of 64,000 standard containers in the first half of 2025[64]

Core Insights - The 22nd Shenzhen International Electronics Expo and Embedded Expo (elexcon2025) opened on August 26, attracting over 10,000 professional visitors on its first day [1] - The expo focuses on "All for AI, All for Green," emphasizing embedded AI, edge computing, power semiconductors, and advanced packaging technologies to support industry development in the AI era [1] - The event featured the 7th China Embedded Technology Conference, with industry experts from Qualcomm, Renesas, ARM, and others discussing trends in embedded AI and its role in industry transformation [1] Industry Participation - Over 400 global embedded and electronic technology suppliers participated in the expo, including companies like Advantech, SEGGER, and National Technology [2] - Multiple forums during the expo addressed hot topics such as AI computing power, smart cockpit technology, and advanced packaging [2] - The "Kaifa Gala" event attracted over 10,000 engineers for learning and interaction, showcasing new technologies and products, which were well-received by attendees [2]

其中，高通技术公司产品市场总监李大龙，在演讲中探讨了物联网行业演进趋势下，AI、计算与连接技术在推动产业变革中的核心作用，并分享了高通如 何通过技术、产品与生态布局满足行业需求。 第 22 届深圳国际电子展暨嵌入式展（ elexcon2025 ）在深圳（福田）会展中心开幕（主办方供图） 展会开幕当天同步举办了2025第七届中国嵌入式技术大会。本届大会邀请了高通、瑞萨、arm、NXP、雷赛智能、火山引擎等众多嵌入式领域专家，围绕嵌 入式AI、边缘AI、端测AI、具身智能等热门议题作主题演讲。 本届展会以"All for AI, All for Green"为主题 8月26日，第22届深圳国际电子展暨嵌入式展（elexcon2025）在深圳（福田）会展中心开幕。展会首日，超过万名专业观众入场参观交流。 作为中国电子与嵌入式技术领域的专业大展，本届展会以"All for AI, All for Green"为主题，聚焦嵌入式AI与边缘计算、存储、功率半导体、电源、元器件以 及SiP/先进封装等方向，旨在为AI时代相关行业的发展提供全栈技术与供应链支持，也为工程师和技术决策者提供交流机会。 本次展会吸引了全球400多 ...