CMS·2025-09-05 07:05Investment Rating - The report maintains an "Accumulate" rating for the company [3] Core Views - The company reported a mid-year performance for 2025, achieving a revenue of 3.74 billion yuan, a year-on-year increase of 11.7%, and a net profit attributable to shareholders of 960 million yuan, up 4% year-on-year. However, Q2 revenue was 920 million yuan, down 51.7% year-on-year, with a net profit of 410 million yuan, a 2.4% increase year-on-year [1] - The company’s toll revenue for H1 2025 was 2.52 billion yuan, a 13.4% increase year-on-year, with Q2 toll revenue at 1.23 billion yuan, up 18.4% year-on-year. Key highways showed varied performance, with significant growth in Xuan-Guang Highway due to completed upgrades [7] - The report highlights the company's strong core assets in Anhui province, with growth potential through acquisitions and expansions, projecting net profits of 1.85 billion, 1.88 billion, and 1.86 billion yuan for 2025-2027, respectively [7] Financial Data Summary - Total revenue for 2023 is projected at 6.631 billion yuan, with a year-on-year growth of 27%. The revenue is expected to decline by 2% in 2025, followed by a significant drop of 24% in 2026 [2][12] - The net profit attributable to shareholders is forecasted to be 1.66 billion yuan in 2023, with a growth of 15%, and is expected to reach 1.85 billion yuan in 2025, reflecting an 11% increase [2][12] - The company’s PE ratio is projected to be 14.7 in 2023, decreasing to 13.2 in 2025, while the PB ratio is expected to decline from 1.9 to 1.7 over the same period [2][13] Key Financial Ratios - The gross margin for H1 2025 was reported at 37.2%, a decrease of 1.3 percentage points year-on-year, with the toll road business gross margin at 55%, down 4.5 percentage points [7] - The company’s return on equity (ROE) is projected to be 15.2% for the latest period, with a slight decline expected in the coming years [3][13] - The debt-to-asset ratio stands at 55.7%, indicating a moderate level of leverage [3]