Core Viewpoint - CICC has raised the net profit forecast for Yuexiu Transportation Infrastructure for 2025 and 2026 by 3.4% and 4.3% to 739 million and 770 million HKD respectively, due to the continuous reduction in financial expenses [1] Financial Performance - The company reported 1H25 revenue of 2.1 billion HKD, a year-on-year increase of 14.9%, and a net profit attributable to shareholders of 360 million HKD, also up 14.9%, exceeding CICC's expectations [2] - The increase in revenue was primarily driven by higher toll income and a significant decrease in financial expenses [2] Toll Revenue Growth - In 1H25, toll revenue reached 2.06 billion HKD, reflecting a year-on-year growth of 15.2%, supported by several factors including the contribution of 260 million HKD from the consolidation of Pinglin Expressway [3] - The company experienced a 56.6% increase in toll revenue from Han-Ezhou Expressway due to construction impacts, and a 17.3% increase from Han-Cai Expressway due to expansion works [3] Cost and Financial Management - Operating costs increased by 22.8% year-on-year in 1H25, with intangible operating rights amortization rising by 26.3%, leading to a decline in gross margin by 3.4 percentage points to 46.8% [3] - Financial expenses decreased by 11.1% year-on-year, benefiting from lower market interest rates, with a weighted average interest rate of 2.6% compared to 3.15% in 1H24 [3] Dividend Policy and Growth Potential - The company maintains a stable dividend policy, with a dividend of 0.12 HKD per share in 1H25, consistent with 1H24, and a payout ratio of 50.6% [2] - Long-term growth is expected from core assets and the acquisition of Pinglin Expressway, with projected dividend yields of 6.9% and 7.3% for 2025 and 2026 respectively [4]
中金：维持越秀交通基建(01052)跑赢行业评级 上调目标价至4.34港元