Zhongyuan Expressway(600020) 太平洋·2024-06-21 07:30Investment Rating - The report initiates coverage with a "Buy" rating for the company [1]. Core Views - The company reported a total revenue of 5.7 billion in 2023, a decrease of 23% year-on-year, while the net profit attributable to shareholders was 0.83 billion, an increase of 489.7% year-on-year [1]. - The company emphasizes its commitment to shareholder returns, as evidenced by an increased cash dividend of 0.149 per share, translating to a dividend yield of 4.0% based on the closing price on April 11 [1]. - The decline in Q1 2024 revenue to 1.09 billion, down 9.1% year-on-year, was attributed to adverse weather conditions and increased free passage days during the Spring Festival [1]. Summary by Sections Business Segments - The main business segments include: - Transportation segment, which generated 4.62 billion in revenue, accounting for 81.0% of total revenue, and 2.32 billion in operating profit, representing 97.4% of total operating profit [1]. - Diversified businesses, including investments in real estate, new energy, and financial enterprises, contributed minimally to revenue and profit [1]. Financial Health - As of the end of 2023, the total liabilities were 35.297 billion, a decrease of 4.86% from the previous period, with a debt-to-asset ratio of 70.51%, down 4.09 percentage points [1]. - The company is focusing on digital transformation and new energy applications, expecting to accelerate these initiatives in the future [1]. Future Outlook - The report anticipates performance growth from projects like Zhengluo, which is expected to enhance future earnings and dividends [1]. - Revenue projections for 2024 are set at 5.806 billion, with a year-on-year growth of 1.8% [10].