Core Viewpoint - The company operates in water supply and sewage treatment, with multiple business segments contributing to its revenue, including water resources, property investment, retail, power generation, hotel management, and toll road operations [9]. Revenue and Profit Growth - The company has shown fluctuations in revenue and net profit growth rates over the years, with a notable increase in revenue in 2023 compared to previous years [11][14]. - The revenue composition for the first half of 2025 indicates that water resources remain the largest segment, contributing 71.531 billion HKD, followed by property investment and power generation [15]. Financial Ratios - As of the first half of 2025, the company's average return on equity was 6.4%, an increase of 0.72 percentage points from the previous year [19]. - The company’s asset turnover ratio has shown variations, with a notable increase in 2025 compared to previous years [21]. Asset and Liability Changes - Significant changes in assets include a 100% decrease in assets classified as held for sale, while intangible assets decreased by 0.71% [25]. - On the liabilities side, long-term borrowings decreased by 1.68%, while deferred tax liabilities increased by 4.67% [28]. Liquidity Ratios - The company reported a current ratio of 1.18 and a quick ratio of 1.15 in the first half of 2025, indicating a stable liquidity position [31].

我们与市场的最大不同？市场担心公司核心路产剩余期限较短，我们认为公司通过改扩建+收并购的方 式能够有效延长剩余收费期限，扩大公路主业规模，且公司路产较为优质，盈利具有一定成长性和持续 性。 潜在催化剂：成乐高速改扩建通车、资产收购。 投资亮点 首次覆盖四川成渝（601107）给予跑赢行业评级，目标价6.85 元，H 股给予跑赢行业评级，目标价5.61 港元，基于股息率估值法，对应A 股2025/2026年股息率4.5%/4.7%，H 股2025/2026 年股息率 6.0%/6.4%，公司是四川省唯一公路类A+H 上市公司。理由如下： 成渝地区核心路产，盈利能力强。公司背靠蜀道集团，辖下路产合计约900公里，主要为成都市放射线 或环线，连接省会成都与省内主要城市，且多为四川至重庆、贵州、云南的出省通道，区域运输需求 大、交通地位显著。公司核心路产开通时间较早，投资成本相对较低，目前已运营成熟，过去十年毛利 率平均为52.8%，盈利能力位居行业前列水平。 持续主业再投资，利润具备成长性。公司核心路产剩余收费期限较短，公司积极开展改扩建和收并购以 增强可持续经营能力：1）成乐高速自2017 年开始改扩建，目前扩容 ...

Summary of Wuhu Expressway Conference Call Company Overview - Wuhu Expressway is the only publicly listed expressway company in Anhui Province, China, established in August 1996 and listed on both the Hong Kong Stock Exchange (code: 00,995.HK) and A-share market (code: 600,012) [3][4] - The company has seen its market capitalization grow from 250 million to 1.16 billion by the end of 2024 [3] Financial Performance - Net profit increased from 180 million in 2000 to 1.67 billion in 2024, with a compound annual growth rate (CAGR) of 9.97% [2][4] - Total expressway mileage expanded from 120 kilometers in 2000 to 609 kilometers in 2024, with an expected increase to 745 kilometers by the end of 2025 [2][4] - The stock price has appreciated significantly, with a 100-fold increase from 1996 to 2025 and a 12-fold increase from 2003 to 2025 [2][7] - The average annual dividend payout ratio over the past three years is 52%, with an average dividend yield of 3.7% [8][9] Strategic Direction - The company is shifting its strategy from scale expansion to improving quality and efficiency, focusing on the output ratio of each road [6] - Major shareholders include Anhui Provincial Transportation Investment Group (31.6%), Hong Kong investors (approximately 30%), and China Merchants Expressway (24.4%) [6] - Future projects will be concentrated near economically developed regions such as the Yangtze River Delta and the Pearl River Delta [6] Recent Developments - In March 2025, Wuhu Expressway completed the acquisition of two new expressway assets in Anhui, increasing total mileage to 745 kilometers, which is expected to contribute to revenue in the second half of the year [10] - The company has implemented differentiated toll pricing, expanding discounts for certain vehicle types from 85% to 95% [12] Market Context - The A-share expressway sector consists of 19 listed companies, with Wuhu Expressway having an average price-to-earnings (P/E) ratio of 16.5 and a weighted price-to-book (P/B) ratio of 1.5 [8] - The expressway sector index has seen an average increase of over 60% in the past five years, with some stocks doubling in value [8] Recovery and Growth Drivers - The expressway transportation sector experienced rapid recovery in 2023, with increased vehicle flow leading to significant growth in performance and stock price [11] - Key growth drivers include the increase in vehicle flow and the continuous acquisition of new road assets, which is expected to yield an annualized growth rate of around 10% [13] Future Outlook - The stock is anticipated to achieve a double-digit dividend yield within five years, positioning it as a defensive asset during market volatility [14]