Shanxi Road&Bridge (000755) 太平洋·2024-09-18 00:30Investment Rating - The report assigns an "Accumulate" rating for Shanxi Expressway, indicating a positive outlook for the stock [2]. Core Views - Shanxi Expressway's main business involves the management and operation of highways, with a total toll mileage of 163.935 kilometers. The company has recently reported a decline in revenue and profit due to reduced toll income, but expects an increase in toll revenue during peak energy transportation seasons [2][4]. - The company has initiated its first cash dividend since a major asset restructuring in 2018, distributing 66 million yuan for the year 2023, and has outlined a three-year shareholder return plan [2][4]. - The company is expected to benefit from increased attention to the Shanxi cultural tourism industry due to upcoming events, which may positively impact its operations [2]. Summary by Sections Financial Performance - For the first half of 2024, Shanxi Expressway reported total revenue of 760 million yuan, a year-on-year decrease of 3.86%. The net profit attributable to shareholders was 237 million yuan, down 3.82% from the previous year [1]. - Basic earnings per share were 0.16 yuan, with a weighted average return on equity of 4.69% [1]. Business Operations - The company operates key highways that serve as major transportation routes for coal and other energy goods. The highways include Pingyu Expressway, Yuhua Expressway, and the Taijia Yellow River Bridge [2]. - The company is also investing in green energy initiatives, including the construction of a "green energy demonstration road" with distributed photovoltaic capacity of 9.2 MW [2]. Future Projections - Revenue projections for the upcoming years indicate a gradual recovery, with expected revenues of 1.712 billion yuan in 2024, reflecting a year-on-year growth of 0.5% [4]. - The net profit is projected to reach 468 million yuan in 2024, with a year-on-year growth of 1.9% [4].