浙江交科（002061）：浙江交通基建龙头，省内投资持续高景气

Investment Rating - The report maintains a "Buy" rating for the company [10] Core Viewpoints - The company is positioned to benefit from high traffic investment in Zhejiang province, with 2024 traffic investment expected to reach a historical high of 4,093 billion, a year-on-year increase of 9.6% [7][74] - The company has a strong order backlog, with total contracts for ongoing projects amounting to 2,285.32 billion, of which 922.69 billion has been recognized as revenue [33] - The company aims for significant profit growth, with projected net profits of 1.46 billion, 1.60 billion, and 1.77 billion for 2024, 2025, and 2026 respectively, corresponding to current market valuations of 6.98, 6.38, and 5.75 times [8] Company Overview - The company, Zhejiang Jiaokao (002061.SZ), is a leading player in transportation infrastructure in Zhejiang province, focusing on engineering and construction [5][18] - Established in November 1998, the company was restructured from a state-owned entity and is controlled by the Zhejiang Provincial State-owned Assets Supervision and Administration Commission [5][28] - The company primarily engages in the investment, design, construction, maintenance, and management of transportation infrastructure projects, including roads, bridges, tunnels, and ports [5][18] Financial Performance - The company has shown stable revenue growth, with 2023 revenue reaching 461.46 billion and net profit of 14.22 billion, primarily driven by its subsidiary, Jiaokong Group [5][28] - The company has a strong focus on maintaining a low expense ratio, which has been decreasing from 2019 to 2023, indicating effective internal management [48] - The company has a positive cash flow trend, with a commitment to increasing cash dividends over the next three years [51] Market Environment - Zhejiang province's GDP growth target for 2025 is around 5.5%, with a focus on maintaining high levels of infrastructure investment [6][64] - The province plans to complete 3,500 billion in transportation investments in 2025, with a goal of becoming a national leader in traffic investment [7][74] - The company is expected to leverage its strong position in the local market, with over 60% of provincial highway investments being controlled by its parent company, Zhejiang Jiaotong [8]