Core Viewpoint - The company's 1H25 performance met expectations, with a slight revenue increase but a significant decline in net profit due to last year's one-time tax benefits from a REIT issuance [1] Financial Performance - 1H25 revenue reached HKD 6.67 billion, a year-on-year increase of 0.9% [1] - Net profit attributable to shareholders was HKD 490 million, down 24.9% year-on-year, aligning with expectations [1] - Revenue from toll roads and environmental protection stabilized, while logistics and port businesses faced challenges [1] Business Segments - **Toll Roads and Environmental Protection**: - Toll road revenue was HKD 2.64 billion, roughly flat year-on-year, with a 4% increase after excluding one-off impacts [1] - Environmental protection revenue rose 2% to HKD 810 million, achieving a net profit of HKD 95.32 million [1] - **Logistics Park and Services**: - Logistics park revenue increased 5% to HKD 790 million, but net profit attributable to shareholders fell 90% to HKD 55.91 million due to high base effects from last year's REIT issuance [1] - Logistics services revenue surged 47% to HKD 200 million, with a loss of HKD 47.98 million attributed to structural adjustments and rising operational costs [1] - **Ports**: - Port revenue decreased 13% to HKD 1.39 billion, with net profit down 72% to HKD 12.04 million due to market demand slowdown and increased depreciation costs from new projects [1] Future Outlook - The logistics park's transformation is expected to contribute positively to performance, with projected tax-adjusted gains of HKD 2.367 billion from the first phase of the South China logistics park [2] - The company aims to enhance asset value through public REIT expansions and private fund issuances [2] - The dividend policy remains stable, with an average payout ratio of 51% over the past five years, leading to an attractive dividend yield of 9.7% for 2025/2026 [2] Earnings Forecast and Valuation - The earnings forecast for 2025 and 2026 remains unchanged, with the current stock price reflecting a price-to-earnings ratio of 5.1 times for both years [2] - The target price is set at HKD 9.38, indicating a potential upside of 23.8% from the current stock price [2]

Core Viewpoint - CICC maintains the profit forecast for Shenzhen International (00152) for 2025 and 2026, with a target price of HKD 9.38, indicating a potential upside of 23.8% from the current stock price [1] Group 1: Financial Performance - The company's 1H25 performance met expectations, with revenue of HKD 6.67 billion, a year-on-year increase of 0.9%, and a net profit of HKD 490 million, down 24.9% year-on-year, primarily due to a one-time tax benefit from the previous year [2] - Revenue from the toll road and environmental protection business remained stable, with toll road revenue at HKD 2.64 billion, essentially flat year-on-year, while the environmental protection business saw a 2% increase to HKD 810 million, achieving a net profit of HKD 95.32 million [3] Group 2: Business Segments - The logistics and port business faced challenges, with logistics park revenue up 5% to HKD 790 million, but net profit down 90% to HKD 55.91 million due to high base effects from the previous year [3] - Port revenue decreased by 13% to HKD 1.39 billion, with net profit down 72% to HKD 1.204 million, attributed to slowing market demand and increased competition [3] Group 3: Future Outlook - The logistics park's closed-loop model is expected to continue contributing to performance, with projected tax-adjusted gains of HKD 2.367 billion from the first phase of the South China logistics park [4] - The company aims to enhance cash flow through public REIT expansions and private fund issuances, leveraging asset appreciation [4] Group 4: Dividend Policy - The company has a stable dividend policy, with an average payout ratio of 51% over the past five years, leading to an attractive dividend yield of 9.7% for 2025/2026 based on profit forecasts [5]

Core Viewpoint - CICC maintains the profit forecast for Shenzhen International (00152) for 2025 and 2026, with a target price of HKD 9.38, indicating a potential upside of 23.8% from the current stock price [1] Financial Performance - The company reported 1H25 revenue of HKD 6.67 billion, a year-on-year increase of 0.9%, and a net profit attributable to shareholders of HKD 490 million, down 24.9%, aligning with CICC's expectations [2] - The decline in net profit is primarily due to a one-time tax benefit of approximately HKD 587 million recognized in the same period last year [2] Business Segment Analysis - **Toll Roads and Environmental Protection**: - 1H25 toll road revenue was HKD 2.64 billion, roughly flat year-on-year, but up 4% after excluding one-off impacts, driven by revenue growth from Jiangjiang Expressway and Jihe Expressway [3] - Environmental protection revenue increased by 2% to HKD 810 million, achieving a net profit of HKD 95.32 million [3] - **Logistics and Port Operations**: - Logistics park revenue rose by 5% to HKD 790 million, but net profit attributable to shareholders fell by 90% to HKD 55.91 million due to high base effects from last year's public REIT issuance [3] - Logistics services revenue surged by 47% to HKD 200 million, with a loss of HKD 47.98 million attributed to structural adjustments and rising operational costs [3] - Port revenue decreased by 13% to HKD 1.39 billion, with net profit down 72% to HKD 1.204 million, impacted by slowing market demand and increased depreciation costs from the Jingjiang Port project [3] - Logistics park transformation generated revenue of HKD 68.74 million, with a profit of HKD 200 million, benefiting from property sales in the Qianhai residential project [3] Future Outlook - The logistics park's large closed-loop model is expected to continue contributing to performance, with anticipated tax-adjusted gains of HKD 2.367 billion from the first phase of the South China logistics park [4] - The transformation of the South China logistics park is projected to gradually release land appreciation and development gains over the next 6-8 years [4] - The company plans to continue promoting public REIT expansions and private fund issuances to achieve cash flow and value appreciation [4] Dividend Policy - The company maintains a stable dividend policy, with an average payout ratio of 51% over the past five years, leading to an attractive dividend yield of 9.7% for 2025/2026 based on a 50% payout assumption [5]