Core Viewpoint - CICC has raised the net profit forecast for Yuexiu Transportation Infrastructure (01052) for 2025 and 2026 by 3.4% and 4.3% to 739 million and 770 million yuan respectively, due to continuous reduction in financial expenses [1] Financial Performance - The company reported 1H25 revenue of 2.1 billion yuan, a year-on-year increase of 14.9%, and a net profit attributable to shareholders of 360 million yuan, also up 14.9%, exceeding CICC's expectations [2] - The increase in revenue was primarily driven by higher toll income and a significant decrease in financial expenses [2] Toll Revenue Growth - In 1H25, the company achieved toll revenue of 2.06 billion yuan, a year-on-year increase of 15.2%, benefiting from several factors including the consolidation of Pinglin Expressway and the impact of construction on other highways [3] - The toll revenue from Han-Ezhou Expressway increased by 56.6% due to construction impacts, while Han-Cai Expressway saw a 17.3% increase [3] Cost and Financial Management - Operating costs increased by 22.8% year-on-year in 1H25, with intangible operating rights amortization rising by 26.3%, leading to a decline in gross margin by 3.4 percentage points to 46.8% [3] - Financial expenses decreased by 11.1% year-on-year, attributed to a drop in market interest rates, with a weighted interest rate of 2.6% in 1H25 compared to 3.15% in 1H24 [3] Dividend Policy and Growth Potential - The company maintains a stable dividend policy, with a dividend of 0.12 HKD per share in 1H25, consistent with 1H24, and a payout ratio of 50.6% [2] - Long-term growth is expected from core assets and strategic acquisitions, with projected dividend yields of 6.9% and 7.3% for 2025 and 2026 respectively, indicating attractive returns for investors [4]

Core Viewpoint - Yuexiu Transportation Infrastructure reported a revenue of 2.099 billion yuan for the first half of 2025, reflecting a year-on-year increase of 14.9%, with a net profit attributable to shareholders of 361 million yuan, also up by 14.9% [1][2] Revenue Growth - The company achieved a revenue of 2.099 billion yuan in H1 2025, marking a 14.9% increase year-on-year [1] - Toll revenue reached 2.059 billion yuan, up 15.2% year-on-year, driven by the consolidation of Pinglin Expressway and increased toll revenue from Hubei Han'e Expressway [1] - The acquisition of a 55% stake in Pinglin Expressway in November 2024 contributed an additional 256 million yuan in toll revenue [1] - Hubei Han'e Expressway generated toll revenue of 154 million yuan, a significant increase of 56.6% year-on-year due to the closure of competing routes [1] Profitability - The net profit attributable to shareholders was 361 million yuan, reflecting a year-on-year increase of 14.9% [1] - The Pinglin Expressway contributed 42 million yuan to project profits, providing new momentum for the company's growth [2] - Hubei Han'e Expressway's project profit contribution was 57 million yuan, showing a remarkable increase of 987.3% year-on-year [1][2] Financial Metrics - Financial expenses amounted to 222 million yuan, down 11.1% year-on-year, attributed to management's optimization of debt structure and reduction of interest rates [2] - The company's gross margin decreased by 3.3 percentage points to 46.8%, primarily due to the amortization of intangible assets related to the consolidation of Pinglin Expressway [2] - Non-controlling project net profit decreased by 4.4% year-on-year, totaling 73.02 million yuan [2] Dividend and Valuation - The current dividend yield is approximately 6.5%, with an interim dividend of 0.12 HKD per share, unchanged from H1 2024 [2] - The interim payout ratio is 50.6%, down from 58.5% in H1 2024 [2] - Projected earnings per share (EPS) for 2025-2027 are estimated at 0.44, 0.45, and 0.46 yuan per share, with corresponding price-to-earnings (PE) ratios of 7.98, 7.81, and 7.70 [2]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company achieved a revenue of 2.099 billion yuan in the first half of 2025, representing a year-on-year increase of 14.9%. The net profit attributable to the parent company was 361 million yuan, also up by 14.9%. The interim dividend payout ratio was 50.6% [1][2] - Revenue growth was primarily driven by the consolidation of Pinglin Expressway and increased toll revenue from Hubei Han'e Expressway. The acquisition of a 55% stake in Pinglin Expressway in November 2024 contributed an additional 256 million yuan in toll revenue. The toll revenue from Hubei Han'e Expressway increased by 56.6% year-on-year to 154 million yuan due to the closure of competing routes [1][2] - The current estimated dividend yield is approximately 6.5%, with an interim dividend of 0.12 HKD per share, unchanged from the first half of 2024. The company is expected to maintain a dividend of 0.25 HKD per share for 2025, consistent with 2024 [3] Summary by Sections Financial Performance - In the first half of 2025, the company reported a revenue of 2.099 billion yuan, a 14.9% increase year-on-year, with toll revenue contributing 2.059 billion yuan, up 15.2% [1] - The net profit attributable to the parent company was 361 million yuan, reflecting a 14.9% increase year-on-year. The contribution from Pinglin Expressway was 42 million yuan, while Hubei Han'e Expressway contributed 57 million yuan, a significant increase of 987.3% [2] - Financial expenses decreased by 11.1% to 222 million yuan, attributed to management's optimization of the debt structure and reduction of interest rates [2] Future Projections - The company is projected to achieve earnings per share (EPS) of 0.44, 0.45, and 0.46 yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 7.98, 7.81, and 7.70 [3][4] - The estimated revenue for 2025 is 4.389 billion yuan, with a growth rate of 13%, followed by 4.511 billion yuan in 2026 and 4.605 billion yuan in 2027 [4]

Core Viewpoint - Yuexiu Transportation Infrastructure reported a 14.9% year-on-year increase in revenue to 2.099 billion HKD and a 14.9% rise in shareholder profit to approximately 361 million HKD for the first half of 2025, primarily driven by the contribution from the Pinglin Expressway [2] Financial Performance - The company declared an interim dividend of 0.12 HKD per share, with a payout ratio of 50.6%, down from 58.5% in the same period last year [2] - Total assets amounted to 37.379 billion HKD, with total liabilities at 21.634 billion HKD, resulting in a capital borrowing ratio of 48.5% and a total asset liability ratio of 57.9% [5] - Cash and cash equivalents increased by 190 million HKD to 2.17 billion HKD by the end of the reporting period [5] Project Contributions - The Pinglin Expressway generated toll revenue of 256 million HKD and a profit attributable to shareholders of 42 million HKD in the first half of 2025 [2] - Other expressways, such as the Cangyu Expressway and Chang-Zhu Expressway, benefited from increased travel, showing a year-on-year increase in both daily toll traffic and revenue [3] Impact of External Factors - The Humen Bridge experienced a 26.5% year-on-year decline in daily toll revenue due to traffic diversion from the Shenzhen-Zhongshan Channel [4] - The Guangzhou North Second Ring Expressway saw a slight decrease in toll revenue by 0.5% due to a minor reduction in truck traffic [3][4] Future Outlook - The company anticipates stable performance from the Pinglin Expressway, with expected earnings for the first and second halves of the year remaining relatively consistent [2] - The management is considering the acquisition of the Shandong Qinbin Expressway from the parent company, contingent on financial and resource assessments [4] Financing and Support - The company has received approval to issue 5 billion HKD in panda bonds and 3 billion HKD in ordinary corporate bonds, along with a 15 billion HKD debt financing tool quota [6] - The Guangzhou North Second Ring expansion project has secured a credit limit of 11.9 billion HKD, with an additional 2 billion HKD in standby credit [6]