东兴证券东兴晨报

Core Insights - The company reported a revenue of 1.83 billion yuan for the first half of 2024, a year-on-year decrease of 5.6%, 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] - Various factors contributed to the underperformance, including extreme weather conditions and traffic diversion due to road network changes [1][2] Revenue Analysis - The toll revenue decline was attributed to severe weather impacting central provinces and increased free holiday days, which negatively affected income [1] - The core asset, Guangzhou North Second Ring, saw a 7.4% decrease in revenue due to traffic diversion from the opening of a new highway [1] Cost and Profitability - Operating costs rose to 903 million yuan, an increase of 8.6% year-on-year, primarily driven by a 10.1% rise in operating rights amortization [1] - Maintenance expenses surged by 39% due to weather-related costs, leading to a notable drop in gross margin by 6.5 percentage points to 50.1% [1] Investment Income - Investment income fell to 76 million yuan from 130 million yuan in the previous year, mainly due to the Guangzhou North Ring Expressway ceasing toll collection [1] - The project is still incurring operational and maintenance costs, resulting in losses that impacted overall investment returns [1] Financial Performance - Financial expenses decreased by 12.2% to 249 million yuan, benefiting from optimized debt structure and lower market interest rates [1] - The actual profit from total external borrowings decreased from 3.24% at the end of the previous year to 2.92% [1] Future Outlook - The second half of 2024 is expected to see improved performance compared to the first half, driven by favorable road network changes [2] - The company anticipates a net profit of 740 million yuan for 2024, with projected earnings per share (EPS) of 0.44 yuan [2]