SZEW(SH:600548) EBSCN·2024-03-24 16:00Investment Rating - The investment rating for the company is "Accumulate" for both A-shares and H-shares [2][3]. Core Views - The company reported a slight decline in revenue for 2023, approximately CNY 9.3 billion, down 0.82% year-on-year, while net profit increased by 15.4% to about CNY 2.33 billion [2]. - The toll road business showed steady progress, with an average daily traffic volume increase of 18.7% compared to 2022, leading to a revenue growth of 8.0% in this segment [2]. - The company plans to distribute a cash dividend of CNY 0.55 per share, maintaining a cash dividend rate above 55% for the past three years [2]. - The REITs project for Yichang Expressway is set to be listed, enhancing the company's investment capabilities by converting stable cash flow projects into public REITs [2]. Summary by Sections Financial Performance - In 2023, the company achieved a net profit of CNY 2.33 billion, with a significant increase in non-recurring net profit by 82.4% to CNY 2.24 billion [2]. - The toll road business generated CNY 5.38 billion in revenue, reflecting an 8.0% increase from the previous year [2]. - The gross margin for the toll road business improved to 50.4%, up 6.6 percentage points from 2022 [2]. Business Development - The company is advancing several infrastructure projects, including the second phase of the Outer Ring Road and the Jiangdong Second Phase project, which is expected to be completed in 2024 [2]. - The company is also adjusting the expansion plan for the Jihe Expressway in response to local government requirements [2]. Market Outlook - Despite the economic slowdown impacting profitability, the company is expected to return to a growth trajectory, with revised net profit forecasts of CNY 2.5 billion for 2024 and CNY 3.1 billion for 2025 [2]. - The company maintains a robust pipeline of toll road projects, which is anticipated to support future revenue growth [2].