DGKG(SZ:000828) Xin Lang Cai Jing·2025-04-17 06:33Core Viewpoint - Dongguan Holdings focuses on its core business of highway operations, divesting from non-core sectors, and aims to provide attractive shareholder returns through a robust dividend plan [1][2][3] Group 1: Business Operations - Dongguan Holdings operates the Dongshen Expressway and its branch line, covering 55.7 kilometers, with a toll operation period of 25 years, benefiting from a strategic location in the Guangdong-Hong Kong-Macao Greater Bay Area [1] - The company has shifted its focus to core operations since 2022, gradually exiting the rail transit and trust businesses, with transportation infrastructure contributing over 75% to revenue [1] - The gross profit structure shows that highway operations contribute 87% to gross profit, while other segments like commercial factoring and electric vehicle charging contribute significantly less [1] Group 2: Financial Performance - Dongguan Holdings' significant investments in Dongguan Securities (20% stake) and Humen Bridge (11.1% stake) historically account for over 70% of investment income and 19% of total profit [1] - The company’s return on equity (ROE) is projected to be 9.9% in 2024, indicating a strong performance relative to industry peers [1] Group 3: Investment Returns and Shareholder Commitment - The Dongshen Expressway expansion project is expected to be completed by December 2028, with an initial approval amount of 17.58 billion yuan and an internal rate of return (IRR) projected at 5.7%, which may improve with declining interest rates [2] - Dongguan Holdings commits to a cash dividend of no less than 0.475 yuan per share annually from 2025 to 2027, supported by low debt levels and strong cash flow [2][3] - The projected net profit for the company from 2025 to 2027 is estimated at 910 million yuan each year, with a PE ratio of 12x and a PB ratio of 1.1x, resulting in a dividend yield of 4.5% based on the latest closing price [3]