SDHS(SH:600350) INDUSTRIAL SECURITIES·2024-11-07 10:42Investment Rating - The report maintains a "Buy" rating for the company [2][11]. Core Insights - The company achieved operating revenue of 19.901 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 10.94%. However, the net profit attributable to shareholders decreased by 5.70% to 2.516 billion yuan [2]. - In Q3 2024, the company reported an operating revenue of 7.765 billion yuan, a year-on-year increase of 19.33%, while the net profit attributable to shareholders decreased by 2.74% to 0.883 billion yuan [2]. - The company is actively pursuing multiple new construction and expansion projects, including the G220 reconstruction project and the Weilai Expressway expansion, which are expected to enhance its sustainable operational capacity [7][8]. Financial Performance Summary - For the fiscal year 2024E, the company is projected to achieve operating revenue of 27.441 billion yuan, with a year-on-year growth rate of 3.4% [3]. - The net profit attributable to shareholders is expected to be 3.327 billion yuan in 2024E, reflecting a modest growth of 0.9% [3]. - The gross profit margin is projected to be 28.3% in 2024E, with a return on equity (ROE) of 8.0% [3]. Revenue Breakdown - The company’s toll revenue (including tax) for the first three quarters of 2024 was 7.569 billion yuan, a decrease of 7.44% year-on-year. The core route, Jiqing Expressway, contributed 2.445 billion yuan, down 13.62% due to traffic diversion from the opening of the Jiqing Middle Line [5][6]. - The Jilai Expressway saw an increase in traffic volume, generating 0.408 billion yuan in toll revenue, up 18.98% year-on-year [5]. Project Developments - The company has made significant progress in its expansion projects, with the Jitai and Jihuo Expressway upgrades advancing smoothly. The Weilai Expressway expansion project has been approved, with an estimated investment of approximately 6.875 billion yuan [7]. - The G220 reconstruction project has been awarded to the company, with a total estimated cost of 3.137 billion yuan, utilizing a BOT model [8]. Subsidiary Performance - The Qilu Expressway subsidiary reported operating revenue of 4.616 billion yuan, a year-on-year increase of 44.25%, although toll revenue decreased by 14.08% [8]. - The rail transit group under the company achieved operating revenue of 3.535 billion yuan, a year-on-year increase of 5.90% [9]. Investment Returns - The company reported investment income of 966 million yuan in the first three quarters of 2024, a slight decrease of 0.25% year-on-year [10]. Dividend Policy - The company maintains a stable dividend policy, with a projected dividend payout ratio of 60%, resulting in a dividend yield of 4.54% for 2024 [11].