Ganyue Expressway(600269) 华创证券·2024-04-27 11:31Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 5.61 CNY, indicating a potential upside of 20% from the current price of 4.68 CNY [4][21][22]. Core Insights - The company reported a 22.42% year-on-year increase in net profit excluding non-recurring items, reaching 3.8 billion CNY, the highest Q1 figure in nearly a decade [5][21]. - The decline in net profit attributable to shareholders was primarily due to a decrease in fair value gains, with Q1 2024 showing a loss of 1.19 million CNY compared to a gain of 120 million CNY in Q1 2023 [5]. - The company has effectively controlled costs, resulting in a gross margin increase to 47.2%, up 2.3 percentage points year-on-year, and a reduction in financial expenses by 15.7% [5][21]. Financial Performance Summary - For Q1 2024, the company reported total revenue of 1.56 billion CNY, a slight increase of 0.19% year-on-year, while total operating costs decreased by 4.04% to 823 million CNY [5][22]. - The company’s core business performance is strong, with significant growth potential from ongoing infrastructure projects, including the expansion of key highways [5][21]. - The financial forecasts for 2024-2026 predict net profits of 1.3 billion CNY, 1.41 billion CNY, and 1.48 billion CNY respectively, with corresponding earnings per share (EPS) of 0.56 CNY, 0.60 CNY, and 0.63 CNY [22][21]. Valuation Metrics - The report projects a price-to-earnings (P/E) ratio of 10 for 2024, with a target market capitalization of 13 billion CNY [5][22]. - The company’s total assets are estimated to grow from 35.87 billion CNY in 2023 to 39.11 billion CNY in 2024, reflecting a solid growth trajectory [12][22].