Core Viewpoint - The company, Shenzhen Expressway Development Co., Ltd. (深高速), has shown solid performance in the toll road and environmental sectors, with significant revenue growth and a stable outlook for future earnings despite challenges in profitability metrics compared to industry averages [2][3][6][7]. Group 1: Company Overview - Shenzhen Expressway was established on December 30, 1996, and listed on the Shanghai Stock Exchange on December 25, 2001, with its registered office in Shenzhen, Guangdong Province [1]. - The company primarily engages in the investment, construction, and operation of toll roads, holding a strong position in the South China region with quality road assets and a robust environmental business layout [1]. Group 2: Financial Performance - For Q3 2025, Shenzhen Expressway reported revenue of 60.5 billion yuan, ranking 5th among 20 companies in the industry, with the top competitor, Shandong Expressway, generating 168.41 billion yuan [2]. - The net profit for the same period was 15.97 billion yuan, placing the company 6th in the industry, with the leading company, China Merchants Highway, achieving 44.23 billion yuan [2]. Group 3: Profitability and Debt Metrics - As of Q3 2025, the company's debt-to-asset ratio stood at 54.14%, down from 58.40% year-on-year, but still above the industry average of 41.31% [3]. - The gross profit margin for Q3 2025 was 36.59%, a decrease from 39.04% year-on-year, and below the industry average of 46.20% [3]. Group 4: Shareholder Information - As of June 30, 2025, the number of A-share shareholders increased by 13.01% to 19,600, while the average number of shares held per shareholder decreased by 11.51% to 73,200 [5]. - By September 30, 2025, Huatai-PineBridge SSE Dividend ETF became the eighth largest shareholder, increasing its holdings by 1.93 million shares [5]. Group 5: Business Highlights and Future Outlook - In H1 2025, the company experienced a 24% year-on-year increase in profits, driven by a 4.3% rise in toll revenue, attributed to the opening of the Shenzhen-Zhongshan Corridor and the Jiangsu Phase II project [6][7]. - The environmental business segment, particularly the kitchen waste treatment operations, generated 3.9 billion yuan in revenue, reflecting a 26.2% increase, bolstered by the commencement of the Guangming Environmental Park project [6][7]. - Future revenue projections for 2025 to 2027 are estimated at 96.10 billion yuan, 100.65 billion yuan, and 104.89 billion yuan, respectively, with net profits expected to be 17.61 billion yuan, 18.48 billion yuan, and 18.79 billion yuan [6].

Core Viewpoint - The company reported a strong performance in H1 2025, with significant growth in net profit and revenue, driven by various operational efficiencies and strategic projects [1][4]. Revenue Performance - In H1 2025, the company achieved operating revenue of 3.92 billion yuan, a year-on-year increase of 4.3%, and a net profit attributable to shareholders of 960 million yuan, up 24.0% [1]. - In Q2 2025, the company recorded operating revenue of 2.15 billion yuan, representing a year-on-year growth of 24.9%, and a net profit of 480 million yuan, which is a 59.1% increase [1]. Toll Revenue and Business Segments - Toll revenue in H1 2025 was 2.45 billion yuan, a slight increase of 0.6% year-on-year; excluding the impact of the Yichang Expressway, the revenue grew by 4.3% [2]. - The gross margin for the toll road business was 49.3%, a decrease of 1.15 percentage points, attributed to increased maintenance costs and depreciation [2]. - Clean energy generation revenue decreased by 4.2% to 290 million yuan, while kitchen waste treatment revenue increased by 26.2% to 390 million yuan [2]. Financial Performance - Financial expenses decreased to 390 million yuan, down 170 million yuan year-on-year, due to lower financing rates and a slight appreciation of the yuan [3]. - Fair value gains increased by 110 million yuan to 80 million yuan, contributing positively to profits [3]. - The company recorded a total impairment provision of 90 million yuan, a decrease of 40 million yuan year-on-year [3]. Future Outlook - The company forecasts revenues of 9.61 billion yuan, 10.07 billion yuan, and 10.49 billion yuan for 2025-2027, with year-on-year growth rates of 3.94%, 4.74%, and 4.22% respectively [4]. - Net profit attributable to shareholders is expected to be 1.76 billion yuan, 1.85 billion yuan, and 1.88 billion yuan for the same period, with growth rates of 53.81%, 4.92%, and 1.70% respectively [4]. - The company maintains a "buy" rating due to its strategic location advantages in the Guangdong-Hong Kong-Macao Greater Bay Area [4].