Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expected performance that will exceed the market benchmark by more than 15% [2][5][13]. Core Views - The company reported a revenue of 1.83 billion yuan for the first half of 2024, a decrease of 5.6% year-on-year, with toll revenue at 1.79 billion yuan, down 5.1% [1]. - The net profit attributable to shareholders was 314 million yuan, reflecting a significant decline of 26.5% compared to the previous year [1]. - The report anticipates gradual improvement in performance for the second half of 2024, despite ongoing impacts from changes in the road network [2]. Summary by Sections Financial Performance - The company's operating costs increased by 8.6% year-on-year to 903 million yuan, primarily due to a 10.1% rise in operating rights amortization [1]. - The gross profit margin fell by 6.5 percentage points to 50.1% due to rising costs and a decrease in traffic volume [1]. - Investment income dropped significantly to 76 million yuan from 130 million yuan, mainly due to the Guangzhou North Ring Expressway ceasing toll collection [1]. Future Outlook - The second half of 2024 is expected to see better performance than the first half, driven by favorable changes in the road network, such as the closure of the Wuhuang Expressway leading to increased traffic on the Han-E Expressway [2]. - The company has adjusted its net profit forecasts for 2024-2026 to 740 million, 818 million, and 897 million yuan, respectively, with corresponding EPS of 0.44, 0.49, and 0.54 yuan [2][6]. Company Overview - The company primarily engages in the investment, operation, and management of highways and bridges in Guangdong Province and other high-growth economic regions in China [4].
越秀交通基建：上半年业绩承压，下半年有望逐步改善