Investment Rating - The report maintains a "Recommended" rating for the company [4][3]. Core Views - The company's revenue for the first half of 2025 was 9.406 billion, a year-on-year decrease of 5.56%. Excluding construction revenue, the revenue decline was only 0.99%. The net profit attributable to shareholders was 2.424 billion, down 11.81% year-on-year. Overall, the company's earnings met expectations [1][2]. - Toll road business revenue slightly increased, with significant revenue growth from the Hu-Ning Expressway, which generated 2.663 billion in revenue, an 8.18% year-on-year increase. This was partly due to traffic rerouting from construction on the Hu-Wu Expressway [1][2]. - Investment income fluctuated significantly, contributing to the decline in profits. The company reported investment income of 700 million, down 33.24% from the previous year, primarily due to reduced earnings from joint ventures and changes in dividend distribution from Jiangsu Bank [2][3]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a gross profit margin of 63.21%, an increase of 2.51 percentage points year-on-year. The operating cost, excluding construction costs, decreased by 6.37% [1][2]. - The company forecasts net profits of 5.09 billion, 5.17 billion, and 5.38 billion for 2025, 2026, and 2027, respectively, with corresponding EPS of 1.01, 1.03, and 1.07 [3][9]. Revenue Breakdown - Toll revenue for the first half of 2025 totaled 4.604 billion, a year-on-year increase of 1.65%. The average daily revenue from the Hu-Ning Expressway increased by 8.18%, while the Ning-Chang Expressway saw a decline of 15.59% [1][2]. - The average daily toll revenue for the Xi-Yi and Chang-Yi Expressways decreased by 28.08% and 12.28%, respectively, due to construction impacts [1][2]. Cost Management - The company reported a significant reduction in maintenance costs, which fell from 215 million to 114 million year-on-year, contributing to the overall decrease in operating costs [2][3].