SDHS(SH:600350) Xin Lang Cai Jing·2025-08-31 00:40Core Viewpoint - The company reported a decline in revenue for the first half of 2025, but managed to achieve a slight increase in net profit, indicating resilience in profitability despite revenue challenges [1][2]. Financial Performance - In H1 2025, the company achieved operating revenue of 10.739 billion yuan, a year-on-year decrease of 11.52%, while net profit attributable to shareholders was 1.696 billion yuan, an increase of 3.89% [1]. - In Q2 2025, the company reported operating revenue of 6.268 billion yuan, down 17.58% year-on-year, with net profit attributable to shareholders at 889 million yuan, up 3.04% [1]. Revenue Breakdown - Toll revenue showed steady growth, with H1 2025 toll revenue increasing by 5.54% year-on-year to 4.914 billion yuan, supported by a total traffic volume of 101 million vehicles, up 13.90% [2]. - Segment performance included: - Road and bridge operations: Toll revenue of 4.914 billion yuan, up 5.54% [2]. - Capital operations: Rail transit group revenue of 2.665 billion yuan, up 16.27% [2]. - Information group revenue of 1.438 billion yuan, down 0.25% [2]. - Qilu Expressway revenue of 1.067 billion yuan, down 61.98% due to a decline in construction business revenue [2]. Infrastructure Development - Core infrastructure expansion projects are progressing well, with significant completion rates reported for various segments, which are expected to enhance traffic volume and toll rates post-completion [3]. - Specific project completion rates include: - Beijing-Taiwan Expressway: 95% for subgrade, 85% for pavement, and 97.2% for bridges [3]. - S16 Rongwei Expressway: 9.17% for subgrade [3]. - G220 Dongshen Line: 27% for main works [3]. Profit Forecast and Investment Outlook - The company forecasts net profits attributable to shareholders of 3.346 billion yuan, 3.630 billion yuan, and 3.871 billion yuan for 2025-2027, with corresponding PE ratios of 13.2x, 12.1x, and 11.4x [4]. - As a leading player in the national expressway sector, the company is expected to benefit from stable cash flows from quality road assets and the nearing completion of core infrastructure projects, which may catalyze profit growth [4].