Core Viewpoint - Guosen Securities maintains an "outperform" rating for Shanghai Industrial Holdings (00363), highlighting the stability of its infrastructure and environmental protection sectors, strong growth in consumer and health segments, increased dividend rate, and reduced financial costs as key supports for future investment value [1] Infrastructure and Environmental Protection Sector - The infrastructure and environmental protection sector generated revenue of HKD 44.33 billion and net profit of HKD 9.33 billion in the first half of the year, indicating stable core business performance [1] - The expressway segment reported revenue of HKD 10.19 billion, a year-on-year increase of 5.1%, with traffic volume rising by 2.1% [1] - Shanghai Industrial Environment achieved a net profit of RMB 3.44 billion, up 7.1% year-on-year, demonstrating strong resilience in solid waste and water treatment [1] Consumer and Health Sector Highlights - The consumer segment saw revenue and net profit growth of 11% and 26%, reaching HKD 19 billion and HKD 4.33 billion, respectively [2] - Nanyang Tobacco performed strongly with revenue of HKD 12.73 billion, a 16.4% increase, and net profit of HKD 3.37 billion, up 20%, with sales volume surging by 31% and successful overseas market expansion [2] - The health segment reported a net profit of HKD 1.41 billion, a significant year-on-year increase of 118.4%, primarily due to a one-time gain recognized by Shanghai Pharmaceuticals [2] Financial Improvement and Dividend Policy - The company improved its financial situation by selling Yuefeng Environmental, using part of the proceeds to repay bank loans, resulting in interest-bearing liabilities decreasing to HKD 585.13 billion and the debt-to-asset ratio falling to 51.5% [3] - Financial costs decreased by 15% year-on-year, and the company announced 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]