Investment Rating - The report maintains an "Accumulate" rating for Dongguan Holdings [3] Core Views - Dongguan Holdings reported a significant increase in net profit attributable to shareholders, with a year-on-year growth of 20.5% in the first half of 2025, driven by a recovery in bad debt provisions [1][7] - The company is focusing on its core business in the Guangdong-Hong Kong-Macao Greater Bay Area, optimizing its business structure by reducing non-core investments [7] - The company has committed to a stable cash dividend of no less than 0.475 CNY per share from 2025 to 2027, with a proposed interim dividend of 0.15 CNY per share for 2025 [7] Financial Performance - In the first half of 2025, the company achieved operating revenue of 770 million CNY, a decrease of 8.6% year-on-year, while net profit attributable to shareholders reached 530 million CNY, an increase of 20.5% [1] - The second quarter of 2025 saw operating revenue of 400 million CNY, down 6.3% year-on-year, but net profit attributable to shareholders surged by 699.2% to 310 million CNY [1] - The company’s gross profit margin improved to 68.9%, with the highway business achieving a gross margin of 75.6% [7] Financial Data and Valuation - The projected net profit attributable to shareholders for 2025-2027 is estimated at 1.014 billion CNY, 941 million CNY, and 942 million CNY respectively, with corresponding PE ratios of 12.4x for 2025 [2][7] - The company’s total market capitalization is approximately 12.5 billion CNY, with a current share price of 12.07 CNY [3] - Key financial ratios include a return on equity (ROE) of 10.4% and a debt-to-asset ratio of 37.1% [3]