Ge Long Hui·2026-03-31 15:08Core Viewpoint - The company reported a decline in revenue and net profit for 2025, primarily due to reduced income from supporting services and real estate, while toll revenue showed resilience and growth in core operations [1][2]. Revenue Performance - The company achieved approximately RMB 20.289 billion in revenue for 2025, a year-on-year decrease of about 12.54%, with core revenue (excluding construction income) at approximately RMB 12.134 billion, down about 1.61% [1][2]. - Toll revenue reached approximately RMB 9.555 billion, reflecting a year-on-year growth of about 0.29%, indicating the resilience of the main business [2]. Traffic Volume and Toll Income - Traffic volumes for key routes such as the Shanghai-Nanjing Expressway and Wuxi Ring Taihu Road increased by 1.84% and 4.50% respectively, contributing to a growth in toll income for several routes [2]. - The company experienced a decline in toll income for some routes due to construction, but parallel routes benefited from traffic diversion, leading to overall growth in toll revenue [2]. Cost Management and Profitability - The company's operating costs totaled RMB 14.188 billion, down approximately 17.03%, with core operating costs at RMB 6.032 billion, a decrease of about 3.25% [3]. - Management and financial expenses decreased by 5.54% and 13.01% respectively, reflecting improved operational efficiency and cost control [3]. Investment Income and Profit Forecast - Investment income for 2025 was RMB 1.255 billion, a decline of 29.52%, primarily due to reduced dividends from Jiangsu Bank and lower contributions from joint ventures [3]. - The company has revised its profit forecasts downward for 2026-2027, with expected net profits of RMB 4.709 billion, RMB 4.734 billion, and RMB 4.820 billion for 2026E-2028E, respectively [4]. Rating and Valuation - Despite the challenges, the company maintains a "Buy" rating, as its toll road business shows steady growth compared to peers, with a projected PE ratio of 13 for 2026-2028 [4].