Core Viewpoint - The report from Pacific Securities highlights that Zhongyuan Expressway's core business involves the investment, construction, and management of highways, with a total maintenance mileage of approximately 808 kilometers disclosed in the semi-annual report [1] Financial Performance - In the first three quarters, the core revenue from highway tolls reached 3.43 billion, representing a year-on-year increase of 1.63%, accounting for 72% of total revenue and contributing a gross profit of 1.837 billion [1] - Revenue from construction services accounted for 27.5% of total revenue, with a gross margin of zero due to accounting standards, while the real estate segment saw a significant year-on-year revenue decline of 50% [1] Future Outlook - The company is expected to achieve steady profit growth this year due to the increase in revenue from consolidated statements [1] - The company plans to maintain a dividend payout ratio of no less than 40% annually over the next three years [1] - The Zhenglu Expressway, a key project, is anticipated to be completed and operational by the end of 2026, with a feasibility study indicating its potential profitability [1] Strategic Initiatives - The company aims to enhance its core business while diversifying its operations [1] - It will leverage its subsidiary focused on digital and technological innovation to strengthen technological capabilities and has established a special fund for technology research and development [1] - The company is optimistic about its future development and maintains a "buy" rating [1]

Investment Rating - The report maintains an "Accumulate" rating for Zhongyuan Expressway (600020) [1][5] Core Views - Zhongyuan Expressway has shown steady profit growth in 2025, with a projected completion of new road assets in the coming year [1][4] - The company reported a total revenue of 4.888 billion RMB for the first three quarters of 2025, representing a year-on-year increase of 3.89%, and a net profit attributable to shareholders of 961 million RMB, up 16.78% year-on-year [3][4] - The company plans to maintain a dividend payout ratio of no less than 40% over the next three years, with a cash dividend of approximately 382 million RMB for 2024, translating to a dividend per share of about 0.17 RMB [3][4] Financial Summary - Total revenue for 2024 is projected at 6.969 billion RMB, with a year-on-year growth of 22.20% [6] - The net profit for 2025 is estimated at 999 million RMB, reflecting a year-on-year increase of 12.62% [6] - The diluted earnings per share (EPS) for 2025 is expected to be 0.44 RMB, with a price-to-earnings (PE) ratio of 9.72 [6][8] - The company's core business, highway toll revenue, accounted for 72% of total revenue, with a gross profit contribution of 1.837 billion RMB [4][6]

Core Viewpoint - The company focuses on the investment, construction, and management of highways, with profits primarily derived from highway operations and investment income from joint ventures [1]. Group 1: Financial Performance - In the first half of 2025, the company achieved an operating income of 3.105 billion yuan, representing a year-on-year increase of 13.17% [1]. - The net profit attributable to shareholders of the listed company was 663 million yuan, reflecting a year-on-year growth of 7.68% [1]. Group 2: Strategic Development - The company is committed to strategic transformation and development planning, aiming to expand its core business and enhance quality and scale [1]. - The focus is on lean management to strengthen the brand and cultivate new productive forces, emphasizing value creation [1]. - The goal is to build a first-class domestic listed company in the highway sector [1].