Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index within the next 6 to 12 months [4][8]. Core Views - The company reported a net profit of 5.32 billion yuan in H1 2025, a year-on-year increase of 20.51%, despite a revenue decline of 8.57% to 7.66 billion yuan [6]. - The company plans to distribute a mid-term cash dividend of 1.5 yuan per 10 shares, totaling approximately 156 million yuan, reflecting a commitment to shareholder returns [6]. - The company is undergoing expansion projects on the莞深高速 highway, with an investment of 8.63 billion yuan in H1 2025, which is expected to enhance future revenue streams [6]. Financial Performance Summary - For H1 2025, the company achieved operating revenue of 7.66 billion yuan, down 8.57% year-on-year, while net profit rose to 5.32 billion yuan, up 20.51% [6]. - The company’s cash flow from operating activities saw a significant increase of 332.74%, reaching 9.31 billion yuan [6]. - The company’s earnings per share (EPS) for H1 2025 was 0.5122 yuan, reflecting a year-on-year increase of 23.45% [6]. Revenue and Profit Forecast - The company’s projected net profits for 2025, 2026, and 2027 are 8.81 billion yuan, 8.93 billion yuan, and 9.31 billion yuan respectively, with corresponding EPS of 0.85 yuan, 0.86 yuan, and 0.90 yuan [6][7]. - The report anticipates a decline in revenue for 2024, followed by a slight recovery in subsequent years, with growth rates of -64% in 2024 and modest increases thereafter [4][7]. Valuation Metrics - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 13.6X, 13.5X, and 12.9X respectively, indicating a favorable valuation compared to historical performance [4][6]. - The company’s return on equity (ROE) is expected to be around 9% in 2025, gradually declining to 8% by 2027 [6][7].

Core Viewpoint - The company is preparing for its 2024 Annual General Meeting, where key proposals including financial reports and board reports will be discussed and voted on by shareholders [1][2][3] Group 1: Meeting Arrangements - The meeting will take place on June 17, 2025, at the Huabin International Hotel in Beijing, with both on-site and online voting options for shareholders [1] - Shareholders can choose either on-site or online voting, but not both, to ensure the integrity of the voting process [1] Group 2: Board and Supervisory Reports - The company has prepared its 2024 Board Report and Supervisory Report in compliance with the requirements of the Hong Kong Stock Exchange and Shanghai Stock Exchange, which will be presented for shareholder approval [1][2] - The Supervisory Board has conducted thorough oversight of the company's operations and financial reporting, ensuring compliance with relevant laws and regulations [2][3] Group 3: Financial Performance and Profit Distribution - The company reported a net profit of 5,669.855 million RMB for 2024, with a proposed dividend distribution of 0.21 RMB per share, totaling 2,147.788 million RMB [9][10] - The proposed dividend distribution represents 45.72% of the distributable net profit attributable to shareholders [9] Group 4: Related Party Transactions - Significant related party transactions include agreements with China Huadian Group, involving a total estimated amount of 811 million RMB for various services and financial arrangements [3][4][5] - The company has renewed financial service agreements with its financial subsidiary, setting a maximum annual credit limit of 45 billion RMB [4][5] Group 5: Independent Directors' Reports - The independent directors have actively participated in governance, ensuring compliance with laws and protecting the interests of minority shareholders [12][14] - They have reviewed and approved various proposals, including the appointment of directors and financial management plans, maintaining a focus on transparency and accountability [12][14][21]

Meeting Information - The annual shareholder meeting is scheduled for June 19, 2025 [1] - The meeting will utilize the Shanghai Stock Exchange's online voting system [1] - The meeting will be held at 14:00 at Huadian Development Building, Beijing [1] Voting Procedures - Voting will be conducted through both on-site and online methods [1][2] - Online voting will be available from 9:15 to 15:00 on the day of the meeting [2] - Specific voting procedures for margin trading and other accounts are outlined [2] Agenda Items - The meeting will review non-cumulative voting proposals, including agreements with Huadian Commercial Factoring (Tianjin) Co., Ltd. and Huaxin International Trust Co., Ltd. [2][3] - The proposals have been approved by the company's board and supervisory board [2][3] Attendance and Registration - Shareholders registered by the close of trading on June 11, 2025, are eligible to attend [5] - Proxy attendance is allowed with proper documentation [5] - Registration methods for attendees are specified, including options for remote shareholders [5] Additional Information - The company will provide a reminder service for shareholders to facilitate participation [4] - Voting rights will be calculated based on the total shares held across all accounts [5][6] - Contact information for inquiries is provided [7]