Ganyue Expressway(SH:600269) Huachuang Securities·2024-03-25 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 5.61 CNY, indicating a potential upside of 22% from the current price [1][2]. Core Insights - The company reported a revenue of 7.492 billion CNY in 2023, a year-on-year increase of 10.86%, and a net profit attributable to shareholders of 1.177 billion CNY, reflecting a significant growth of 69.16% [1][2]. - The report highlights clear optimization potential and undervalued asset value, particularly in financial expenses and core road assets [1][2]. - The company’s traffic service revenue grew steadily, with a total of 3.506 billion CNY, up 4.29% year-on-year, driven by increased traffic volume on its managed routes [1][2]. Financial Performance Summary - The company achieved a gross profit margin of 32%, unchanged from the previous year, while the management expense ratio decreased by 0.15 percentage points to 3.95% [1][2]. - The company plans to distribute a total cash dividend of 374 million CNY, which accounts for 31.74% of the net profit attributable to shareholders [1][2]. - The report projects net profits for 2024 and 2025 to be 1.3 billion CNY and 1.408 billion CNY, respectively, with corresponding earnings per share (EPS) of 0.56 CNY and 0.60 CNY [1][2]. Revenue Breakdown - The traffic service revenue was 3.506 billion CNY, with a gross margin of 51.28%, an increase of 1.98 percentage points year-on-year [1][2]. - The smart transportation business generated 1.353 billion CNY, up 13.06% year-on-year, although its gross margin decreased by 3.11 percentage points [1][2]. - Real estate sales revenue surged by 79.98% to 835 million CNY, with a gross margin of 16.68%, an increase of 4.21 percentage points [1][2]. Future Outlook - The report emphasizes that financial expenses have clear improvement potential due to the maturity of high-interest debt and the recent issuance of short-term financing bonds at lower rates [1][2]. - The remaining toll collection years for key road assets are long, with significant growth potential from ongoing expansion projects [1][2].