FUJIAN EXPRESSWAY(600033) INDUSTRIAL SECURITIES·2025-02-13 11:06Investment Rating - The investment rating for the company is "Buy (First Time)" [1] Core Views - The company holds high-quality highway assets in Fujian Province, with significant improvements in dividend expectations [3] - The company plans to increase the minimum dividend payout ratio to 35% in 2024 and implement a mid-term dividend plan, leading to improved dividend rates [4] - The company is expected to achieve net profits of 927 million, 947 million, and 967 million yuan from 2024 to 2026, with corresponding PE valuations of 11.0, 10.8, and 10.5 times [4] - The company has a strong return on assets (ROA) and low financial leverage, indicating potential for ROE improvement [4][47] - The company has a solid investment strategy in the financial sector, providing stable investment returns [4][54] Summary by Sections Company Overview - The company operates 282 kilometers of highways in Fujian, holding the province's best highway assets [4][10] - The company is the only listed entity under Fujian Transportation Investment Group, with a significant state-owned shareholding [8] Historical Performance - The company has shown steady revenue growth, with a compound annual growth rate (CAGR) of 5.31% from 2004 to 2023 [23] - In 2023, the company achieved total revenue of 3.05 billion yuan, a year-on-year increase of 14.15% [23] Financial Metrics - The company’s total revenue projections for 2024 to 2026 are 3.08 billion, 3.18 billion, and 3.27 billion yuan, with corresponding net profits of 927 million, 947 million, and 967 million yuan [5] - The gross profit margin is expected to remain stable around 55% from 2024 to 2026 [5] Investment Strategy - The company has made strategic investments in financial institutions, yielding stable returns [54] - The company’s investment income from 2021 to 2024 has been consistent, contributing to overall profitability [54] Future Outlook - The company is expected to benefit from the economic growth in Fujian Province, with a GDP growth rate of 5.0% in 2023 [57] - Increased demand for transportation due to rising manufacturing and tourism activities is anticipated to drive revenue growth [62]