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]

Summary of Conference Call Records Company Overview - The conference call records pertain to **申高速** and **深高速**, focusing on their financial performance and operational updates for the first half of 2025. Key Points Financial Performance - **深高速** reported toll revenue of **24.5 billion** CNY, accounting for **63%** of total revenue, with a year-on-year growth of **0.64%** and a same-caliber growth of **4.3%** driven by the **深中通道** and **沿江二期** projects, despite a negative impact from the **外环二期** project due to traffic diversion [2][3][20] - **申高速** achieved total revenue of approximately **39.2 billion** CNY, a **4.3%** increase year-on-year, with a net profit of **9.6 billion** CNY, reflecting a **24%** rise, primarily due to reduced interest income and improved performance in the kitchen waste treatment business [3][4][13] Segment Performance - The **大环保** segment generated **7.5 billion** CNY, representing **19%** of total revenue, with a **2%** increase year-on-year, attributed to the operation of the **光明环境园** kitchen waste treatment project and increased revenue from **兰德环保** [2][4] - **建造服务** revenue reached **4.6 billion** CNY, marking a **60%** increase, mainly from the **外环高速** and **光明环境园** projects [2][6] Financial Costs and Investments - Financial expenses decreased by **1.7 billion** CNY, a **30%** reduction, due to the replacement of foreign debt with low-interest CNY loans and a decline in funding costs [2][7][23] - Investment income fell by **29%** year-on-year, primarily due to last year's gains from equity disposals and impairment provisions for real estate inventory in joint ventures [2][7] - Capital expenditures for the first half of 2025 were approximately **21 billion** CNY, with projected total capital expenditures of **192 billion** CNY from the second half of 2025 to the end of 2027 for various construction projects [2][8][9] Operational Updates - The toll road segment showed stable growth, with **16** projects covering **613 kilometers**. The **深中通道** and **沿江二期** positively impacted traffic and revenue, while the **外环二期** faced challenges due to traffic diversion [2][10][20] - Major ongoing projects include **外环三期**, **吉河高速** expansion, and **京港澳穗管段** expansion, with progress meeting expectations [2][11][16] Strategic Planning - The company is formulating its **十五五** strategic plan, focusing on enhancing core toll road operations and optimizing the **大环保** business while cautiously exploring quality clean energy projects [4][22] - Plans to improve operational efficiency and reduce costs through technology and management enhancements were discussed, including the integration of digital platforms and smart construction techniques [17][27] Future Outlook - The company aims to maintain high-quality growth in the second half of 2025, focusing on achieving annual operational targets and exploring opportunities in toll road expansions and clean energy projects [19][22] - The **清洁能源** segment faced challenges with a **4.2%** decline in revenue and a drop in gross margin due to increased curtailment rates in wind projects [22][23] Regulatory Environment - The company is closely monitoring the revision of toll road management regulations, which could significantly impact the industry [24] Shareholder Returns - The company has committed to a stable dividend policy, with a cash dividend payout ratio of no less than **55%** for the years 2024-2026, contingent on operational performance and funding needs [28] Miscellaneous - The **青连高速** road surface improvement project had a temporary negative impact on traffic revenue, estimated at **20 million** CNY, but is expected to enhance revenue post-completion [29]

Core Viewpoint - Shenzhen International and Shenzhen Expressway have announced the subscription of two structured deposit products, each with a principal amount of RMB 500 million, aimed at enhancing cash management and increasing overall returns while ensuring the safety of raised funds [1][4]. Group 1: Subscription Details - Shenzhen Expressway subscribed to the first structured deposit product on July 30, 2025, and the second on July 31, 2025, each with a principal of RMB 500 million [1][3]. - The structured deposit products have a range of yields between 1.2% and 3.1% [3][4]. - Both products are issued by Jiangsu Bank and are categorized as capital-protected floating yield types [4][5]. Group 2: Compliance and Reporting - The subscription amounts for both structured deposit products are below 5% for Shenzhen Expressway, exempting it from the reporting and shareholder approval requirements under Listing Rules [2][5]. - For Shenzhen International, the first structured deposit product does not require disclosure, but the combined calculations of both products exceed 5% but remain below 25%, necessitating compliance with reporting requirements while being exempt from shareholder approval [2][6]. Group 3: Strategic Rationale - The structured deposit products are considered low-risk and are intended to utilize temporarily idle raised funds for cash management, thereby improving fund utilization efficiency and enhancing capital preservation and appreciation [4][8]. - The boards of Shenzhen International and Shenzhen Expressway believe that the transactions are conducted on normal commercial terms and are fair and reasonable, aligning with the overall interests of their shareholders [4][8]. Group 4: Company Background - Shenzhen Expressway primarily engages in the investment, construction, and management of toll roads and environmental protection businesses, including solid waste resource processing and clean energy generation [4]. - Shenzhen International focuses on logistics, toll roads, ports, and environmental protection, with strategic operations in key regions such as the Guangdong-Hong Kong-Macao Greater Bay Area and Yangtze River Delta [4].

( 於百慕達註冊成立之有限公司 ) (股份代號：00152) 須予披露的交易 ( 於中華人民共和國註冊成立的股份有限公司 ) (股份代號：00548) 自願性公告 聯合公告 深高速認購兩項結構性存款產品 認購兩項結構性存款產品 深 圳 國 際 及 深 高 速 (深 圳 國 際 擁 有 約 47.30%權 益 的 附 屬 公 司 )各自的 董事會宣佈，深高速於 2025 年 7 月 30 日認購了本金為人民幣 5 億元 的結構性存款產品(第一期)，並於 2025 年 7 月 31 日進一步認購了本 金為人民幣 5 億元的結構性存款產品(第二期)。 香港交易及結算所有限公司及香港聯合交易所有限公司對本聯合公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本聯合公告全部或任何部份內容而產 生或因倚賴該等內容而引致的任何損失承擔任何責任。 - 1 - 認購兩項結構性存款產品 深圳國際及深高速各自的董事會宣佈，深高速於 2025 年 7 月 30 日認 購了本金為人民幣 5 億元的結構性存款產品(第一期)，並於 2025 年 7 月 31 日進一步認購了 本金為人民幣 5 億元的結構性存款產 ...

Core Viewpoint - The article emphasizes the importance of identifying investment opportunities with strong certainty in the current volatile macroeconomic environment, highlighting the significance of risk management and predictable earnings for listed companies [1]. Group 1: Investment Attractiveness of Chow Tai Fook Enterprises - Chow Tai Fook Enterprises has shown a strong stock performance, achieving a five-year consecutive annual increase, with notable annual gains of 65% in the previous year and over 30% in both 2021 and 2023 [1][2]. Group 2: Independent Shareholding Structure - The company underwent a significant restructuring in late 2023, completely isolating its shareholding from New World Development, thus eliminating concerns about potential risks from the real estate sector [3]. - Chow Tai Fook Enterprises operates independently from other business platforms under Chow Tai Fook Group, ensuring compliance with listing requirements and preventing internal profit transfer risks [3][4]. Group 3: Diversified Business Operations - The company has five core business segments: toll roads, insurance, logistics, construction, and facilities management, which exhibit strong anti-cyclical characteristics [6]. - For the first half of the fiscal year 2025, the company reported an operating profit of HKD 2.2 billion, a year-on-year increase of 8%, and a net profit attributable to shareholders of approximately HKD 1.16 billion, up 15% [6]. Group 4: Financial Stability - Chow Tai Fook Enterprises maintains a robust financial position, with liquid assets totaling approximately HKD 30 billion and cash reserves of about HKD 18.6 billion, against only HKD 2.3 billion in debt due within a year [7]. - The company's net debt ratio stands at around 39%, indicating a healthy financial status relative to its assets and equity [7][8]. Group 5: Shareholder Returns - The company has a strong track record of returning value to shareholders, having paid dividends for 22 consecutive years, demonstrating its profitability and financial stability [9]. - For the first half of fiscal year 2025, Chow Tai Fook Enterprises maintained an interim ordinary dividend of HKD 0.3 per share and a special dividend of HKD 0.3 per share, resulting in a trailing twelve-month dividend yield of 12.87% [10][11].

Investment Rating - The report initiates coverage with a "Buy" rating for Shenzhen International [1][6] Core Views - Shenzhen International is a state-owned enterprise with high-quality resources, focusing on logistics, toll roads, ports, and environmental protection, aiming to become a leading urban infrastructure developer and operator in China [5][17] - The company has developed a "big closed-loop" business model for logistics park transformation and a "small closed-loop" model for asset securitization, enhancing its earnings resilience [5][6] - The transformation of the South China logistics park is expected to contribute over HKD 15.658 billion in after-tax revenue [5] - The company maintains a stable dividend policy with a payout ratio of around 50% of net profit, making it an attractive high-dividend stock [5][37] Financial Data and Profit Forecast - Revenue projections for Shenzhen International are as follows: - 2023: HKD 20.524 billion - 2024: HKD 15.571 billion - 2025E: HKD 16.007 billion - 2026E: HKD 16.488 billion - 2027E: HKD 17.159 billion - Net profit attributable to shareholders is forecasted to be: - 2023: HKD 1.902 billion - 2024: HKD 2.872 billion - 2025E: HKD 3.081 billion - 2026E: HKD 3.430 billion - 2027E: HKD 3.925 billion [4][6] Business Model and Strategy - The company operates in four main sectors: toll roads and environmental protection, logistics, port services, and other investments [5][28] - The "big closed-loop" model focuses on land value appreciation through transformation and redevelopment, while the "small closed-loop" model involves asset securitization through public REITs or private funds [5][28] - The logistics and port business is the core of the company, with toll roads and environmental protection providing a stable revenue base [5][28] Market Position and Competitive Advantage - Shenzhen International is the only state-owned enterprise in Shenzhen that is publicly listed and focuses on modern logistics, toll roads, ports, and environmental protection [5][17] - The company has a strong presence in key economic regions such as the Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta, and Beijing-Tianjin-Hebei Economic Zone [5][17] - The company has a competitive edge due to its strategic location and experience in land development and asset management [5][9] Dividend Policy - The company has maintained a consistent dividend payout ratio of around 50% since 2017, with total dividends of HKD 15.593 billion from 2015 to 2024 [5][37] - Future dividends are expected to remain stable, supported by the logistics park transformation and asset securitization initiatives [5][37]

Investment Rating - The credit outlook for the toll road industry in 2025 is stable, indicating a low credit risk for bond-issuing enterprises in this sector [2][36]. Core Insights - The toll road industry is expected to maintain a stable development trend in 2025, supported by improved external conditions, economic stabilization, and increased public travel willingness [2][5]. - The industry faces competition from other transportation modes such as rail and air, but toll roads remain a crucial part of the transportation infrastructure for short-distance travel [20][21]. - Recent government policies are promoting toll road reforms, digital transformation, and differentiated charging mechanisms, which are expected to enhance operational efficiency and reduce costs in the logistics sector [21][24]. Industry Development - In 2024, both passenger and freight volumes on national roads are projected to grow year-on-year, with passenger volume reaching 11.781 billion trips, a 157.64% increase [7]. - The total length of national expressways reached 183,600 kilometers by the end of 2023, with a year-on-year increase of 0.64 million kilometers [5]. Industry Structure - The toll road industry is characterized by high investment requirements, strict entry barriers, and long recovery periods. The growth in vehicle ownership supports the demand for toll road services [17][18]. - The supply side of the industry is influenced by economic development and policy planning, with significant investments expected in western regions under the Belt and Road Initiative [17][18]. Industry Policy - Recent policies have focused on optimizing toll road construction, promoting digital upgrades, and enhancing the green technology level of infrastructure [21][22]. - The government is encouraging private sector participation in toll road projects, with specific guidelines for public-private partnerships [22][23]. Financial Performance - In the first three quarters of 2024, most provincial toll road enterprises experienced a decline in revenue and net profit due to high base effects from the previous year [28][35]. - Despite the revenue decline, the overall debt servicing capability remains strong, with expectations for stable operational conditions in 2025 [28][35]. Credit Quality - The toll road industry saw a significant issuance of bonds in 2024, totaling 621.27 billion yuan, with a high proportion of AAA-rated issuers [36][38]. - The industry faces short-term repayment pressures due to a large volume of bonds maturing in 2025, but overall credit quality remains high [36][38].