Xin Lang Cai Jing·2025-09-04 00:27Core Viewpoint - Ninghu Expressway reported a decline in revenue and net profit for the first half of 2025, with a focus on stable toll road operations and growth in electricity sales despite challenges in construction services [1][2]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 9.406 billion yuan, a year-on-year decrease of 5.56%, and a net profit attributable to shareholders of 2.424 billion yuan, down 11.81% [1]. - For Q2 2025, revenue was 4.624 billion yuan, a significant decline of 28.71%, while net profit was 1.213 billion yuan, down 19.21% [1]. - Toll road business remained stable with revenue of 2.278 billion yuan in Q2, a slight increase of 1.04%, while construction service revenue fell to 1.726 billion yuan, down 51.40% [1][2]. Profitability Metrics - The gross margin for Q2 2025 was 31.61%, an increase of 10.81 percentage points year-on-year. Excluding construction service revenue, the gross margin was approximately 50.43%, up 4.46 percentage points [2]. - Investment income for Q2 was 479 million yuan, a decrease of 36.32% year-on-year, primarily due to reduced dividends from Jiangsu Bank [2]. Strategic Developments - The company is advancing several new construction and expansion projects, including the Ningyang Yangtze River Bridge North Connection Project (expected to open by the end of 2025) and the expansion of the Xiyi Expressway South Section (expected to open by June 2026) [2]. - Ongoing planning for future expansion projects is also being actively pursued [2]. Earnings Forecast - The company is expected to focus on core road assets and maintain steady growth, with projected net profits of 4.916 billion yuan, 5.092 billion yuan, and 5.378 billion yuan for 2025-2027, corresponding to P/E ratios of 13.8, 13.3, and 12.6 respectively [3].