Core Viewpoint - The company reported a stable performance in H1 2025, with revenue of 56.6 billion RMB, a slight increase of 0.13% year-on-year, and a net profit of 5.259 billion RMB, up 5.05% year-on-year, despite a significant decline in new contract signing due to a high base effect from a major project in Q1 2024 [1] Financial Performance - H1 2025 revenue breakdown: Technology-driven business revenue increased by 73% to 20.5 billion RMB, while investment-driven, construction, and operation segments saw declines of 21%, 17%, and growth of 17% respectively [1] - New contracts signed in H1 2025 totaled 92.6 billion RMB, down 19.2% year-on-year, but adjusted for the previous year's high base, it reflects a growth of 22.8% [1] Regional Performance - Mainland China revenue was 29.34 billion RMB, down 8.8%, but operating profit increased by 4.3% to 6.05 billion RMB, with a gross margin of 22.8% [2] - Hong Kong revenue rose by 39.6% to 23.24 billion RMB, with a slight increase in operating profit, while Macau experienced a significant decline in both revenue and profit [2] Financial Health - The company maintained a healthy financial position with an average financing cost of 3.15%, down 0.39 percentage points year-on-year, and a debt-to-asset ratio of 71.6% [2] - Operating cash flow for H1 2025 was positive at 1.23 billion RMB, marking the fourth consecutive year of positive cash flow [2] Profit Forecast and Valuation - The company’s net profit forecasts for 2025-2027 are set at 10.3 billion, 11.2 billion, and 12.1 billion HKD respectively [3] - The target price has been raised to 17.57 HKD, reflecting a favorable outlook based on strong cash flow and growth in new contracts [3]