Core Viewpoint - Sichuan Chengyu (601107) announced that its subsidiary Chengdu North Exit Expressway Co., Ltd. will stop charging tolls for the Chengdu North Exit Expressway after September 17, 2025, which will not significantly impact the company's financial performance [1] Group 1 - Chengdu North Exit Expressway, in which the company holds a 60% stake, will cease toll collection as per the announcement from the Sichuan Provincial Department of Transportation [1] - The total toll revenue for the Chengdu North Exit Expressway in 2024 is projected to be 10,329.7 million yuan, which represents a small portion of the company's total toll revenue of 477,713.53 million yuan for the same year [1] - The company will ensure the timely termination of toll collection and manage subsequent related tasks according to the directives from higher authorities [1]

Core Viewpoint - The Chengbei Expressway, a subsidiary of Sichuan Chengyu Expressway (00107.HK), will cease toll collection on September 17, 2025, which is not expected to significantly impact the company's financial performance due to its relatively small contribution to total revenue [1]. Financial Impact - The total toll revenue from Chengbei Expressway for the year 2024 is projected to be 10.3297 million, which represents a minor portion of the company's total toll revenue of 477.71353 million for the same year [1]. - The cessation of toll collection is aligned with the announcement from the Sichuan Provincial Department of Transportation, and the company will ensure compliance with the directive [1].

Core Viewpoint - Sichuan Chengyu Expressway (00107) announced that its subsidiary Chengdu North Exit Expressway Co., Ltd. will stop charging tolls from September 17, 2025, which will not significantly impact the company's financial performance [1] Financial Impact - The total toll revenue from Chengbei Exit Expressway for the year 2024 is projected to be 10.3297 million, which constitutes a small portion of the company's total toll revenue of 477.71353 million for the same year [1]

四川成渝高速公路股份有限公司公告，其控股子公司成都城北出口高速公路有限公司投资的城北出口高 速，将于2025年9月17日收费期限届满，自当日24时起停止收费，对通行车辆免收通行费。公司将按部 署按时终止收费并做好后续工作。该高速2024年度通行费收入10329.7万元，占公司2024年度通行费收 入总额477713.53万元比重较小，收费期满对公司业绩无重要影响，提醒投资者注意风险。 ...

Core Viewpoint - Sichuan Chengyu (601107.SH) announced that its subsidiary Chengdu North Export Expressway Co., Ltd. will stop charging tolls for the Chengdu North Export Expressway after September 17, 2025, which will not significantly impact the company's financial performance due to the relatively small contribution of toll revenue from this expressway [1] Financial Impact - The total toll revenue from the Chengdu North Export Expressway for the year 2024 is projected to be 103 million yuan, which accounts for a minor portion of the company's total toll revenue of 4.777 billion yuan for the same year [1]

Core Viewpoint - Sichuan Chengyu (601107.SH) announced that its subsidiary Chengdu North Export Expressway Co., Ltd. will stop charging tolls for the Chengdu North Export Expressway after September 17, 2025, which will not significantly impact the company's financial performance due to the relatively small contribution of toll revenue from this expressway [1]. Summary by Relevant Sections - **Toll Collection Termination** The Chengdu North Export Expressway will cease toll collection starting from September 17, 2025, at 24:00, as per the announcement from the Sichuan Provincial Department of Transportation [1]. - **Financial Impact** The toll revenue from the Chengdu North Export Expressway for the year 2024 is projected to be 103 million, which represents a small portion of the total toll revenue of 4.777 billion for the company in 2024, indicating that the termination of tolls will not have a significant impact on the company's overall performance [1]. - **Operational Preparedness** The company will ensure the timely cessation of toll collection and will prepare for subsequent related activities in accordance with directives from higher authorities [1].

Group 1 - The core business of the company's infrastructure and environmental sector remains stable, with revenue of HKD 44.33 billion and net profit of HKD 9.33 billion in the first half of the year. The highway segment generated revenue of HKD 10.19 billion, a year-on-year increase of 5.1%, with traffic volume up by 2.1% [1] - The consumer and health sectors showed significant growth, with the consumer segment achieving revenue and net profit growth of 11% and 26%, respectively, reaching HKD 19 billion and HKD 4.33 billion. The Nanyang Tobacco business performed strongly, with revenue of HKD 12.73 billion, a 16.4% increase, and net profit of HKD 3.37 billion, a 20% increase, alongside a 31% rise in sales volume [2] - The company's financial situation has improved, with interest-bearing liabilities reduced to HKD 585.13 billion and the debt-to-asset ratio down to 51.5%. Financial expenses decreased by 15%. The dividend policy is positive, with an interim dividend of HKD 0.42 per share for 2025, totaling HKD 4.57 billion, maintaining the same level as the previous year, while the payout ratio increased from 38% to 43.8% [3] Group 2 - The company is expected to achieve net profits of HKD 29.34 billion, HKD 30.84 billion, and HKD 31.97 billion for the years 2025-2027, with year-on-year growth rates of 4.8%, 4.8%, and 3.7% respectively [1]

Core Viewpoint - Ninghu Expressway reported a decline in revenue and net profit for the first half of 2025, primarily due to reduced investment income from joint ventures and adjustments in dividend cycles from Jiangsu Bank [1][2] Financial Performance - The company achieved an operating revenue of 9.406 billion yuan, a year-on-year decrease of 5.6%. Excluding construction revenue, the revenue decline was 0.99%, indicating stable core business operations [1] - The net profit attributable to shareholders was 2.424 billion yuan, down 11.8%, influenced by reduced investment income and changes in the dividend cycle from Jiangsu Bank [1] Toll Revenue - In the first half of 2025, toll revenue reached approximately 4.6 billion yuan, reflecting a year-on-year growth of about 1.65%. The growth rate varied across major routes due to reconstruction and expansion impacts [1] Dividend Adjustments - Jiangsu Bank's dividend cycle adjustment led to a mid-term dividend of approximately 168 million yuan for the first half of 2025, a significant decrease of 54.38% compared to the full-year dividend of 368 million yuan in the same period of 2024 [1] Infrastructure Development - The core road asset expansion and reconstruction are ongoing, with the Ningyang Yangtze River Bridge northern connection project expected to open by the end of 2025, and the southern section of the Xiyi Expressway projected to be operational by June 2026, which is anticipated to significantly improve regional traffic flow [2] Technological Advancements - The company is developing a new ecological model for safe and intelligent management of highway maintenance, integrating real-time drone data with human expertise to enhance rescue efficiency and optimize core network capacity [2] Investment Outlook - Based on the 2025 mid-term report, the company maintains its previous profit forecast, expecting net profits of 5.447 billion yuan, 5.790 billion yuan, and 6.049 billion yuan for 2025E-2027E, with corresponding PE multiples of 8, 7, and 7 [2]

Core Insights - The company reported a revenue of 9.406 billion yuan in the first half of 2025, a year-on-year decrease of 5.56%. Excluding construction revenue, the revenue decline is 0.99% [1] - The net profit attributable to the parent company was 2.424 billion yuan, down 11.81% year-on-year. Despite a 4.31% increase in gross profit, net profit decreased due to reduced investment income from joint ventures and changes in dividend cycles from Jiangsu Bank [1][2] - The toll road business saw a slight increase in revenue, with a total toll income of 4.604 billion yuan, up 1.65% year-on-year, and a gross margin increase of 2.51 percentage points to 63.21% [1] Revenue Breakdown - The core asset, the Huning Expressway, generated 2.663 billion yuan in revenue, with a daily average income increase of 8.18%. This was influenced by construction on the Huwu Expressway, which redirected some traffic to the Huning Expressway, while the Ningchang Expressway saw a daily income decrease of 15.59% [1] - The Xiyi Expressway and Changyi Expressway experienced daily toll income declines of 28.08% and 12.28%, respectively, due to partial closures for construction on the Huyiyi Expressway. Conversely, the Wufengshan Bridge saw a daily toll income increase of 13.08% due to traffic rerouting from closed sections [1] Cost and Investment Income - Operating costs, excluding construction impacts, decreased by 6.37% year-on-year, with toll road business costs at 1.694 billion yuan, down 4.84%. This reduction was primarily due to a significant drop in maintenance costs from 215 million yuan to 114 million yuan [2] - Investment income totaled 700 million yuan, a decrease of 33.24% from the previous year, mainly due to reduced earnings from joint venture road and bridge companies and a change in the dividend cycle from Jiangsu Bank, resulting in a 54.38% decline in dividends received [2] Profit Forecast and Recommendations - The company is projected to achieve net profits of 5.09 billion yuan, 5.17 billion yuan, and 5.38 billion yuan for the years 2025 to 2027, with corresponding EPS of 1.01, 1.03, and 1.07 yuan, leading to PE ratios of 13.3X, 13.1X, and 12.6X [3] - The company is strategically located in the core area of the Yangtze River Delta, focusing on its main business with strong operational capabilities, leading to a "recommended" rating [3]

Core Viewpoint - Zhejiang Huhangyong plans to absorb and merge with Zhejiang Zhenyang Development through a share exchange, aiming for a listing on the A-share market, which is seen as a strategic move to leverage current supportive policies for mergers and acquisitions in the A-share market [1][2] Group 1: Merger and Acquisition Details - The share exchange ratio is set at 1:1.0800, with Zhejiang Huhangyong's A-share price at RMB 13.50 per share and Zhenyang's exchange price at RMB 14.58 per share [1] - Zhejiang Huhangyong commits to a cash dividend of no less than RMB 0.41 per share annually for the next three years post-merger, contingent on meeting relevant conditions [1][6] Group 2: Market Position and Growth Potential - The company is positioned to become a leader in the A-share highway sector, benefiting from its asset scale, road network, and profitability, with potential inclusion in the CSI 300 Index [2] - Zhejiang Huhangyong's core assets are strategically located in the economically vibrant Yangtze River Delta, ensuring high traffic and stable demand for its toll roads [3] Group 3: Financial Performance and Valuation - As of 2025, the company is projected to achieve revenues of RMB 8.685 billion, a 3.8% increase year-on-year, and a net profit of RMB 2.787 billion, up 4.0% year-on-year [4] - The company has a significant valuation gap compared to its A-share peers, with a TTM price-to-earnings ratio of 7.16, compared to an average of 12.46 for similar companies [5][4] Group 4: Dividend Policy and Shareholder Returns - Since its listing in 1997, Zhejiang Huhangyong has distributed a total of RMB 28.460 billion in dividends, which is 7.78 times its IPO fundraising amount [6] - The merger is viewed as a deep practice of value reconstruction for state-owned enterprises, aiming to provide a low-risk, high-return investment opportunity [6]