Core Viewpoint - Shandong Expressway reported a decline in revenue for the first half of 2025, primarily due to reduced construction service income, but showed growth in other business segments, leading to an increase in net profit [1][2]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 10.739 billion, a year-on-year decrease of 11.52%, while net profit attributable to shareholders was 1.696 billion, an increase of 3.89% [1]. - Excluding construction service income, the operating revenue was 9.735 billion, reflecting an increase of 8.62% year-on-year [1]. - Revenue from toll road operations was 4.770 billion, up 5.40% year-on-year, attributed to the completion of the Jihe Expressway expansion [1]. - The gross profit margin for the first half of 2025 was 34.44%, an increase of 5.66 percentage points year-on-year, while the gross profit margin excluding construction service income was 38.00%, a decrease of 0.98 percentage points [2]. Business Segments - The company reported revenue from various segments: - Electromechanical engineering construction: 1.332 billion, up 10.08% year-on-year [1]. - Merchandise sales: 1.278 billion, up 11.00% year-on-year [1]. - Railway transportation: 1.237 billion, up 7.28% year-on-year [1]. - Investment income for the first half of 2025 was 639 million, a decrease of 8.82% year-on-year, mainly due to the absence of gains from equity disposals compared to the previous year [2]. Infrastructure Development - The company is actively advancing several expansion projects, including: - The Jingtai Qiji expansion project, with 95% completion on the subgrade and 85% on the pavement, expected to open in December 2026 [3]. - The S16 Rongwei expansion project, with a budget of 6.834 billion and expected completion in October 2027 [3]. - The G220 Dongshen expansion project, with a budget of 3.137 billion, is also progressing [3]. Profit Forecast - The company is expected to maintain steady growth, with projected net profits for 2025, 2026, and 2027 at 3.215 billion, 3.376 billion, and 3.557 billion respectively, corresponding to PE ratios of 13.7, 13.1, and 12.4 [4].