SDHS(SH:600350) Huachuang Securities·2024-04-22 23:31Investment Rating - The report maintains a "Recommended" rating for Shandong Expressway (600350) [1] Core Views - The company reported stable growth in performance, with operating revenue of 26.55 billion yuan, up 18.62% year-on-year, and a net profit attributable to shareholders of 3.3 billion yuan, up 8.5% year-on-year [1] - The company has increased its dividend per share to 0.42 yuan, a rise of 0.02 yuan from 2022, with a cash dividend ratio of 61.7%, corresponding to a dividend yield of 4.6% [1] - The toll road business is steadily recovering, with toll revenue of 10.557 billion yuan, up 10.6% year-on-year, and traffic volume increasing by 23% [1] Summary by Sections Financial Performance - In 2023, the company achieved a net profit of 3.3 billion yuan, with a return on equity (ROE) of 9.3%, an increase of 0.83 percentage points year-on-year [1] - Quarterly net profit figures for 2023 were 789 million yuan, 930 million yuan, 804 million yuan, and 407 million yuan, with the last quarter showing a significant increase of 75.19% year-on-year [1] - The company’s profit distribution plan includes a cash dividend of 0.42 yuan per share, reflecting a commitment to returning value to shareholders [1] Toll Road Business - The company operates a total of 2,864 kilometers of toll road assets, with 1,555 kilometers owned and 1,309 kilometers managed [1] - Major toll roads such as Jiqing Expressway and Jingtai Expressway have shown significant revenue growth, with Jiqing Expressway generating 3.6 billion yuan, up 7.4% year-on-year, and Jingtai Expressway generating 2.16 billion yuan, up 43.1% year-on-year [1] - The overall toll revenue has seen an average annual growth of 11.17% since 2019 [1] Other Business Segments - Railway business revenue reached 2.37 billion yuan, up 16.1% year-on-year, while merchandise sales revenue was 3.17 billion yuan, up 19% [1] - The company’s engineering construction revenue was 3.39 billion yuan, reflecting a growth of 3.4% year-on-year [1] Investment Projections - The report maintains profit forecasts of 3.6 billion yuan for 2024 and 3.9 billion yuan for 2025, with expected net profits of 4.2 billion yuan in 2026 [1] - The estimated earnings per share (EPS) for 2024-2026 are projected to be 0.75 yuan, 0.81 yuan, and 0.87 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 12, 11, and 10 times [2][1]