Zheng Quan Zhi Xing·2025-06-06 12:36Core Viewpoint - Shandong Highway Bridge Group Co., Ltd. maintains a long-term credit rating of AAA, with a stable outlook for both the company and its convertible bonds, indicating strong financial health and operational stability [1][3]. Company Overview - The company is a core listed subsidiary of Shandong Highway Group, primarily engaged in road and bridge construction, with a high market share in Shandong Province [3][11]. - As of the end of 2024, the company had total assets of CNY 1,633.61 billion and equity of CNY 353.72 billion [10][11]. Financial Performance - In 2024, the company achieved total operating revenue of CNY 713.48 billion and a profit of CNY 36.57 billion, with a stable operating profit margin of 12.97% [10][11]. - The company’s total debt reached CNY 395.79 billion by the end of 2024, reflecting a 15.43% increase from the previous year [6][10]. Contractual and Project Management - The company signed 1,363 new contracts in 2024, with a total value of CNY 961.62 billion, indicating a strong pipeline for future revenue [13]. - As of the end of 2024, the company had a backlog of uncompleted contracts valued at CNY 1,182.31 billion, ensuring continued business activity [13][14]. Market Position and Competitive Advantage - The company ranks 46th among the top 200 construction enterprises in China, showcasing its competitive strength in the industry [11]. - It has a comprehensive range of qualifications, including special-grade qualifications for general contracting in road and municipal engineering, enhancing its bidding capabilities [12]. Industry Environment - The construction industry in Shandong is experiencing growth, supported by government investments in infrastructure, with a 3.3% increase in fixed asset investment in 2024 [10][11]. - The company benefits from favorable regional economic conditions, with Shandong's GDP growing by 5.7% in 2024, which positively impacts construction demand [10][11].