SDHS(600350) ZHONGTAI SECURITIES·2024-09-02 10:00Investment Rating - The report assigns a "Buy" rating for the company, expecting a relative increase of over 15% in the stock price compared to the benchmark index over the next 6 to 12 months [6]. Core Views - The company's toll revenue has declined, putting pressure on its performance, but the dividend yield remains attractive [1]. - In the first half of 2024, the company achieved an operating income of 12.137 billion yuan, a year-on-year increase of 6.16%, while the net profit attributable to shareholders was 1.632 billion yuan, a year-on-year decrease of 7.23% [2][4]. - The company is actively investing in key projects, with significant progress in expansion projects expected to enhance long-term growth in toll revenue [2][4]. Summary by Sections Financial Performance - The company reported operating income of 18,486 million yuan in 2022, with a projected increase to 26,546 million yuan in 2023, reflecting a growth rate of 44% [2]. - The net profit attributable to shareholders is expected to grow from 2,855 million yuan in 2022 to 3,297 million yuan in 2023, marking a 15% increase [2]. - The earnings per share (EPS) is projected to rise from 0.59 yuan in 2023 to 0.68 yuan in 2024 [2]. Investment Highlights - The company has invested approximately 1.17 billion yuan in key engineering projects in the first half of 2024, with significant completion rates in various construction phases [2]. - The completion of expansion projects is anticipated to lead to increased traffic flow and improved toll standards, contributing to the company's long-term growth potential [2][4]. Market Position - The company's stock price is currently at 9.08 yuan, with a market capitalization of 44,057 million yuan [2]. - The report indicates that the company maintains a stable dividend policy, with a projected dividend payout ratio of at least 60% of the net profit attributable to shareholders [2][4].