Zhi Tong Cai Jing·2026-02-25 03:52Core Viewpoint - Shenwan Hongyuan has initiated coverage on Anhui Wantuo Expressway (00995) with a "Buy" rating, projecting net profits for 2025-2027 to be 1.955 billion, 2.002 billion, and 2.119 billion yuan respectively, indicating year-on-year growth of 17%, 2%, and 6% [1] Group 1: Business Operations - Wantuo Expressway's core assets are located in the economically vibrant Yangtze River Delta, with significant advantages in location, operating approximately 745 kilometers of expressways as of June 30, 2025 [1] - The company has been actively acquiring local expressway resources since its listing, completing multiple acquisitions in 2003, 2005, 2012, 2021, and 2025, which has allowed it to control several high-quality road assets [2] - The company has completed expansion projects on several highways and plans to officially start the expansion of the Gaijie Expressway in 2025 [2] Group 2: Financial Performance - Wantuo Expressway maintains a high dividend payout ratio, consistently providing substantial returns to shareholders, with a dividend ratio of around 60% since 2021 [3] - The company's return on equity (ROE) was 11.45% in Q3 2025, outperforming other companies in the industry, and its ROE has remained at the upper end of the industry from 2020 to 2024 [3] - The company's debt-to-asset ratio has been low from 2020 to 2024, providing a solid financial cushion for business expansion and strategic planning [3]