Investment Rating - The report assigns a "Buy" rating for Shenzhen International (00152) [2] Core Views - Shenzhen International is controlled by the Shenzhen State-owned Assets Supervision and Administration Commission and holds quality assets in the Greater Bay Area [8] - The logistics business serves as a solid foundation, with REITs spin-offs and logistics park upgrades opening up profit elasticity [8] - The toll road and port businesses provide stable profit contributions, with a central profit contribution of approximately HKD 1.1 billion [18] Summary by Relevant Sections 1. Control and Asset Management - Shenzhen International is a state-owned enterprise under the Shenzhen State-owned Assets Supervision and Administration Commission, focusing on urban support development and operations [13][14] 2. Logistics Business Development - The logistics business is centered around logistics parks, with an operational area of 6.71 million square meters as of H1 2025, and a compound annual growth rate of 24.07% from 2014 to 2024 [23][24] - The company has completed the REITs spin-off for five projects, contributing a total of HKD 14.2 billion to net profit as of H1 2025 [8][38] - The logistics park projects are expected to generate significant land appreciation and development profits, with projected after-tax returns of HKD 136.5 billion from the South China logistics park project [60][62] 3. Toll Road and Port Business - The toll road and port operations are managed by subsidiaries, contributing a stable profit base with a net profit of HKD 4.9 billion in H1 2025 [65] - The company holds approximately 47.3% equity in Shenzhen Expressway, which operates 16 toll road projects with a total toll mileage of 613 kilometers [66] 4. Financial Projections - The company is projected to achieve revenues of HKD 17.06 billion, HKD 17.61 billion, and HKD 18.75 billion for the years 2025, 2026, and 2027 respectively, with corresponding net profits of HKD 3.17 billion, HKD 3.47 billion, and HKD 3.53 billion [6][8]

Core Viewpoint - Zhejiang Hu-Hang-Yong Highway Co., Ltd. has been awarded the "Corporate Governance Golden Bull Award" at the 2025 Xiamen Industrial Development Conference, highlighting its competitive edge in the capital market [1]. Group 1: Company Performance and Recognition - The Golden Bull Award, established in 1999 and newly introduced for Hong Kong-listed companies in 2023, recognizes companies excelling in scale, profitability, debt repayment ability, asset management, growth potential, and innovation [1]. - Hu-Hang-Yong has won this award for two consecutive years, reflecting its strong performance in the capital market [1]. Group 2: Operational Strengths - The company has maintained a focus on stable operations and core business since its listing in 1997, consistently delivering long-term value to investors [5]. - Hu-Hang-Yong's core assets are strategically located in the economically vibrant Yangtze River Delta, ensuring high traffic and logistics flow, which supports revenue growth [6]. - In 2024, the company ranked first among national highway listed companies in terms of asset scale, toll revenue, and profitability, with a return on equity exceeding 11% for three consecutive years [6]. Group 3: Financial Performance - For the first half of 2025, the company reported revenues of RMB 8.68546 billion, a year-on-year increase of 3.8%, and a net profit attributable to shareholders of RMB 2.78748 billion, up 4.0% [6]. - The company has maintained a robust operating cash flow, ensuring sustainable dividends and funding for future capital expenditures and potential expansions [6]. Group 4: Strategic Initiatives - Hu-Hang-Yong is advancing a strategic plan to create an "A+H" dual listing platform by merging with A-share listed company Zhenyang Development, aiming to enhance its valuation and broaden financing channels [7]. - The company has consistently paid annual cash dividends exceeding RMB 32 billion over 26 years, with dividends increasing from RMB 1.541 billion in 2020 to RMB 2.307 billion in 2024 [7]. - A cash dividend arrangement has been set for the next three years post-merger, ensuring a minimum annual dividend of RMB 0.41 per share, with a 6.5% increase in dividends [7]. Group 5: Future Development Strategy - The company aims to enhance its operational efficiency and profitability through strategic initiatives focused on traffic management, smart transportation, and innovative technology applications [8]. - Future strategies include deepening core business operations, promoting industrial upgrades, and expanding data product transactions to drive growth [8].

Core Viewpoint - Zhejiang Hu-Hang-Yong Highway Co., Ltd. has been awarded the "Corporate Governance Golden Bull Award" at the 2025 Xiamen Industrial Development Conference, highlighting its strong performance and commitment to high-quality development in the context of the Hong Kong stock market's recovery [1] Group 1: Company Performance - The company has maintained a solid operational focus and has consistently improved its governance capabilities, which are seen as the foundation for sustainable and stable growth [2] - In 2024, the company ranked first among national highway listed companies in terms of asset scale, toll revenue, and profitability, with a return on equity exceeding 11% for three consecutive years [2] - For the first half of 2025, the company achieved revenue of 8.686 billion yuan, a year-on-year increase of 3.8%, and a net profit attributable to shareholders of 2.787 billion yuan, up 4.0% year-on-year [2] Group 2: Strategic Initiatives - The company is progressing with a stock-swap merger with A-share listed company Zhenyang Development, aiming to establish an "A+H" dual listing platform to enhance valuation and broaden financing channels [3] - Over the past 26 years, the company has consistently prioritized shareholder returns, with cumulative annual cash dividends exceeding 32 billion yuan, more than eight times its IPO fundraising amount [3] - The company has set a cash dividend arrangement for the upcoming merger, ensuring a minimum annual cash dividend of 0.41 yuan per share for the next three years, with a 6.5% increase in per-share dividends [3] Group 3: Future Strategy - The company will continue to focus on expanding its core business, enhancing traffic efficiency, and improving profitability through various operational measures [4] - It aims to promote industrial upgrades by leveraging smart transportation technologies and accelerating product iterations to enhance safety and traffic flow [4] - The company plans to deepen the application of innovative technologies and expand cross-domain data product transactions, creating new business models for data asset trading [4]

Core Viewpoint - Wuhu Expressway, established in 1996 and listed in 2003, is the first highway company in Anhui Province, focusing on the investment, construction, operation, and management of toll roads, benefiting from significant regional resource advantages [1] Financial Performance - In Q3 2025, Wuhu Expressway achieved a revenue of 5.386 billion yuan, ranking 6th in the industry, surpassing the industry average of 4.278 billion yuan and the median of 3.529 billion yuan, but still trailing behind the top competitors [2] - The net profit for the same period was 1.502 billion yuan, ranking 7th in the industry, above the industry average of 1.282 billion yuan and the median of 0.893 billion yuan [2] Financial Ratios - As of Q3 2025, Wuhu Expressway's debt-to-asset ratio was 52.22%, higher than the industry average of 41.31%, and increased from 36.87% in the same period last year [3] - The gross profit margin for the period was 41.25%, up from 35.60% year-on-year, but below the industry average of 46.20% [3] Executive Compensation - The chairman, Wang Xiaowen, received a salary of 456,600 yuan in 2024, an increase of 393,600 yuan from 2023 [4] Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 51.41% to 25,600, while the average number of shares held per shareholder decreased by 33.95% [5] Strategic Developments - In Q3 2025, Wuhu Expressway reported a toll revenue of 1.389 billion yuan, a year-on-year increase of 16.24%, with total toll revenue for the first three quarters reaching 3.915 billion yuan, up 13.83% year-on-year [6] - The company plans to acquire 7% of Shandong Expressway for 3.019 billion yuan, aiming to enhance effective investment and deepen strategic cooperation [6]

Core Viewpoint - Chutian Expressway, a significant player in China's highway sector, has shown mixed financial performance in Q3 2025, with revenue ranking 10th in the industry but net profit ranking 12th, indicating potential areas for improvement in profitability and operational efficiency [2][3]. Financial Performance - In Q3 2025, Chutian Expressway reported revenue of 3.696 billion yuan, ranking 10th out of 20 in the industry, below the top competitor Shandong Expressway's 16.841 billion yuan and the second-ranked Ninghu Expressway's 12.981 billion yuan, but above the industry median of 3.529 billion yuan [2]. - The company's net profit for the same period was 569 million yuan, ranking 12th in the industry, significantly lower than the leading competitor's net profit of 4.423 billion yuan and the second's 4.037 billion yuan, as well as below the industry average of 1.282 billion yuan [2]. Profitability and Debt - Chutian Expressway's asset-liability ratio stood at 51.45% in Q3 2025, higher than the previous year's 49.72% and above the industry average of 41.31%, indicating increased debt pressure [3]. - The company's gross profit margin was reported at 25.97%, a decline from 43.32% in the previous year and significantly lower than the industry average of 46.20%, suggesting a need for improvement in profitability [3]. Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 2.70% to 44,900, while the average number of shares held per shareholder decreased by 2.63% to 35,800 shares [5]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited ranked fourth with 14.6952 million shares, a decrease of 13.7807 million shares from the previous period [5].

Core Viewpoint - Shanghai Industrial Holdings (00363) is recognized as a stable growth stock in infrastructure and consumer sectors, attracting investor attention due to its high dividends and low valuation [1] Financial Performance - The company reported a revenue of HKD 9.476 billion and a net profit of HKD 1.042 billion for the first half of the year, with infrastructure and consumer goods contributing significantly to the earnings [1] - The infrastructure and environmental protection sectors contributed a net profit of HKD 933 million and HKD 403 million, respectively [1] - The company announced an interim dividend of HKD 0.42 per share, with a payout ratio of 43.8% and a dividend yield of 6.4% [1] Business Segments - The infrastructure segment, which includes toll roads, water services, and clean energy, contributed 92% of the net profit, with toll roads being a major cash cow [2] - The toll road segment generated a net profit of HKD 548 million in the first half, while water services contributed HKD 344 million and HKD 120 million from two wastewater treatment businesses [2] - The consumer goods segment, including Nanyang Tobacco and Yongfa Printing, showed a revenue of HKD 1.9 billion, accounting for 20.05% of total revenue, with a profit contribution of HKD 403 million, reflecting a 26% year-on-year increase [3][4] Strategic Developments - The company exited its investment in Yuefeng Environmental, recovering HKD 4 billion in cash, which was deemed the optimal choice for maximizing shareholder value [3] - The company is focusing on expanding its presence in overseas markets for Nanyang Tobacco, with over 60% of revenue coming from international sales [4] - The company is exploring new growth opportunities in the health sector, with a significant cash reserve of HKD 28.5 billion available for investments [4][5] Financial Health - The company has improved its net debt ratio from 65.12% at the end of 2024 to 60.99%, with interest-bearing debt decreasing to HKD 58.51 billion [6] - The company reported operating cash flows of HKD 4.355 billion and HKD 4.813 billion for 2023 and 2024, respectively, resulting in a net inflow of HKD 9.168 billion [6] Valuation Insights - The company is considered undervalued, with a price-to-book (PB) ratio of 0.3, compared to 0.9 for the railway and road sectors [7] - The price-to-earnings (PE) ratio stands at 5.5, significantly lower than the industry averages, indicating potential for valuation recovery [7][8] - The company has consistently paid dividends, with a total of HKD 21.838 billion distributed since 2000, maintaining a high payout ratio even during challenging periods [7]

Group 1 - Strategic emerging industries and future industries will be key directions for central enterprises to cultivate a second growth curve during the 14th Five-Year Plan period [2] - Chengfei Integration has identified drone fuselage manufacturing as an important new development direction, included in the company's 14th Five-Year Plan [2] - Some central enterprises have set specific growth targets, with Zhenhua Technology aiming to increase the proportion of civil business to 30% by the end of the 14th Five-Year Plan [2] Group 2 - CNOOC Development is accelerating its layout in chemical new materials, expanding production capacity for DPC catalysts and functional membrane materials [3] - Digital transformation is a crucial path for central enterprises to cultivate new growth points, with China Merchants Highway planning to promote smart and green development in the toll road operation industry chain [3] - The focus on high-end resin and polyether polyol products by Shenyang Chemical aims to serve high-growth markets such as automotive seats and medical gloves [3] Group 3 - China National Materials International acknowledges challenges in integration and business transformation, aiming to enhance performance and structure during the 14th Five-Year Plan [4] - New energy storage has become a key focus for several energy central enterprises, with Zhonglv Electric prioritizing the development of new energy storage projects [4] - Hubei Energy plans to develop new businesses in inspection and testing, new energy storage technology, and hydrogen energy [4] Group 4 - Hong Sifang, a fertilizer production central enterprise under China Salt Group, will prioritize industry transformation and the cultivation of strategic emerging industries during the 14th Five-Year Plan [5] - Jiangnan Chemical is focusing on the transformation of the civil explosives industry and aims to promote cross-regional and cross-ownership restructuring [5] - Zhongke Technology plans to extend its operations into the valve industry and maintenance services to achieve industrial breakthroughs [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company has a stable toll road operation, and ongoing projects are expected to release incremental revenue [5] - In the first half of 2025, the company achieved operating revenue of 9.406 billion yuan, a year-on-year decrease of 5.56%, and a net profit attributable to the parent company of 2.424 billion yuan, a year-on-year decrease of 11.81% [5] - The second quarter revenue was 4.624 billion yuan, down 28.71% year-on-year, primarily due to reduced investment in road and bridge projects [5] - The toll road business showed stable performance with revenue of 2.278 billion yuan in Q2, up 1.04% year-on-year [5] - The company is steadily advancing new construction and expansion projects, which will strengthen road asset scale and release incremental revenue [6] Financial Summary - The company’s gross profit margin in Q2 2025 was 31.61%, an increase of 10.81 percentage points year-on-year [6] - The projected net profit for 2025-2027 is estimated to be 4.916 billion yuan, 5.092 billion yuan, and 5.378 billion yuan respectively, with corresponding PE ratios of 13.3x and 12.6x [7] - The company’s total market capitalization is approximately 67.707 billion yuan, with a circulating market capitalization of about 67.525 billion yuan [3]

Financial Performance - First Pacific's gross asset value reached $5.6 billion[8] - Recurring profit increased by 11% to a record high of $375.4 million compared to $339.1 million[19] - Net profit rose 41% to $391.2 million from $277.8 million[19] - The Board approved an interim distribution of 13.0 HK cents (1.67 U S cents) per share[19] Portfolio Highlights - Indofood's net sales rose 4% to a record high of IDR59.8 trillion[31] - MPIC's contribution from investee companies increased by 18% to a record high of ₱17.5 billion[47] - Meralco's core profit increased by 10% to a record high of ₱25.5 billion[58] - MPTC's revenues rose 18% to a record ₱18.1 billion[69] Debt and Ratings - Investment-grade credit ratings are maintained from S&P (BBB- with Stable outlook) and Moody's (Baa3 with Stable outlook)[26] - Fixed-rate borrowings constitute 54% of total borrowings[25] - PLDT's Maya fintech unit delivered its first half-yearly profit with PLDT's share amounting to ₱0.4 billion[93]

Core Viewpoint - Hong Kong property developer K. Wah International Holdings has entered a critical phase, facing significant financial distress and defaulting on its offshore debts, marking a shift in the stability traditionally associated with Hong Kong real estate companies [1][21]. Group 1: Financial Distress and Default - K. Wah announced a suspension of all offshore bank debts, notes, and perpetual securities, officially joining the ranks of defaulting companies [1][19]. - The company failed to pay interest on a USD bond due in July 2029 and sought to replace cash payments with physical assets, which was opposed by a creditor group [1][4]. - As of 2024, K. Wah's total offshore debt amounts to approximately USD 1.51 billion, with an additional USD 890.5 million in perpetual securities, totaling nearly USD 2.4 billion in suspended interest payments [4][12]. Group 2: Revenue and Business Performance - K. Wah's revenue has significantly declined, with total operating income dropping from HKD 246.78 billion in 2020 to HKD 55.37 billion in 2024, a decrease of over 77.5% [9]. - The company's toll road business, a key revenue source, contributed HKD 2.725 billion in 2020, but the overall revenue from this segment has become increasingly critical as real estate development revenues fell [8][9]. - In 2024, K. Wah reported a net loss of HKD 3.308 billion, with shareholder losses amounting to HKD 4.122 billion, nearly equivalent to its cash reserves [11][16]. Group 3: Debt Management and Restructuring - K. Wah is pursuing debt restructuring and has sold toll road assets to alleviate debt pressure, raising HKD 4.412 billion from the sale of four toll roads in mainland China [11][16]. - The company plans to use part of the proceeds from asset sales for comprehensive restructuring, indicating a shift in strategy to manage its financial obligations [16][19]. - Despite the sale of assets, K. Wah's cash flow situation remains dire, with operating cash flow insufficient to cover debt repayments, necessitating further restructuring efforts [11][13]. Group 4: Industry Context - Other Hong Kong property firms are also facing challenges, with New World Development announcing delays in interest payments on perpetual bonds totaling USD 3.4 billion, marking a significant shift in the industry [21][22]. - The overall performance of Hong Kong property companies is declining, with several firms reporting losses and liquidity issues, indicating a potential turning point in the real estate market [21][23].