Changjiang Securities·2025-09-12 08:41Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 9.41 billion yuan for the first half of 2025, a year-on-year decline of 5.56%, and a net profit attributable to shareholders of 2.42 billion yuan, down 11.8% year-on-year [2][6] - In Q2 2025, the company achieved a revenue of 4.62 billion yuan, a significant year-on-year decline of 28.7%, with a net profit of 1.213 billion yuan, down 19.2% year-on-year [2][6] - The company's highway toll revenue in Q2 2025 was 2.28 billion yuan, showing a slight increase of 1.0% year-on-year, despite a decrease in traffic volume due to construction impacts [12] - The company’s construction revenue, supporting services, and real estate sales saw declines, while electricity sales increased due to weather factors [12] - The company maintained a stable dividend policy, with a slight increase in DPS to 0.49 yuan per share, resulting in a current dividend yield of 3.7% [12] Summary by Sections Financial Performance - The company’s total revenue for 2025 is projected to be 23.965 billion yuan, with a net profit of 5.072 billion yuan, reflecting a stable financial outlook despite recent declines [16] - The company’s operating profit in Q2 2025 was 1.46 billion yuan, an increase of 8% year-on-year, driven by cost reduction and efficiency improvements [12] Traffic and Revenue Analysis - Traffic volume on the core highway segment increased by 1.2%, with average daily toll revenue rising by 6.8% [12] - However, traffic on several other highways saw significant declines due to ongoing construction projects [12] Future Outlook - The company is expected to see a gradual recovery in profitability, with projected net profits of 5.07 billion yuan, 5.28 billion yuan, and 5.46 billion yuan for 2025, 2026, and 2027 respectively [12] - The company’s long-term growth potential remains strong due to its strategic positioning in quality road assets [12]