Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company reported a revenue of 9.41 billion yuan for the first half of 2025, a year-on-year decline of 5.56%, and a net profit attributable to shareholders of 2.42 billion yuan, down 11.8% year-on-year [2][6] - In Q2 2025, the company achieved a revenue of 4.62 billion yuan, a significant year-on-year decline of 28.7%, with a net profit of 1.213 billion yuan, down 19.2% year-on-year [2][6] - The company's highway toll revenue in Q2 2025 was 2.28 billion yuan, showing a slight increase of 1.0% year-on-year, despite a decrease in traffic volume due to construction impacts [12] - The company’s construction revenue, supporting services, and real estate sales saw declines, while electricity sales increased due to weather factors [12] - The company maintained a stable dividend policy, with a slight increase in DPS to 0.49 yuan per share, resulting in a current dividend yield of 3.7% [12] Summary by Sections Financial Performance - The company’s total revenue for 2025 is projected to be 23.965 billion yuan, with a net profit of 5.072 billion yuan, reflecting a stable financial outlook despite recent declines [16] - The company’s operating profit in Q2 2025 was 1.46 billion yuan, an increase of 8% year-on-year, driven by cost reduction and efficiency improvements [12] Traffic and Revenue Analysis - Traffic volume on the core highway segment increased by 1.2%, with average daily toll revenue rising by 6.8% [12] - However, traffic on several other highways saw significant declines due to ongoing construction projects [12] Future Outlook - The company is expected to see a gradual recovery in profitability, with projected net profits of 5.07 billion yuan, 5.28 billion yuan, and 5.46 billion yuan for 2025, 2026, and 2027 respectively [12] - The company’s long-term growth potential remains strong due to its strategic positioning in quality road assets [12]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 4.78 billion yuan in Q1 2025, representing a year-on-year increase of 37.7%. However, the net profit attributable to shareholders was 1.211 billion yuan, down 2.9% year-on-year, while the net profit excluding non-recurring items grew by 0.63% year-on-year [1][3]. Summary by Sections Financial Performance - In Q1 2025, the company's highway toll revenue was 2.33 billion yuan, a year-on-year increase of 2.3%. The growth was influenced by a lower base in Q1 2024 due to adverse weather conditions and one less day of toll-free travel during the Spring Festival compared to the previous year [8]. - The traffic volume on the Jiangsu section of the Huning Expressway increased by 5.5%, benefiting from the diversion caused by the expansion of the Yangtze River Highway. Other expressways experienced varied traffic changes, with some showing significant declines due to construction impacts [8]. - The company’s construction revenue, supporting services, electricity sales, real estate sales, and other income for Q1 2025 were 1.8 billion, 420 million, 170 million, 20 million, and 50 million yuan respectively, with respective year-on-year changes of +13.3%, 0.0%, -0.4%, -0.6%, and +0.2 million yuan [8]. Investment and Capital Expenditure - The company’s investment expenditure significantly increased in 2024, reaching 11.16 billion yuan, a year-on-year increase of 307.26%. The planned capital expenditure for 2025 is 9.37 billion yuan, a decrease of 1.79 billion yuan from 2024, focusing on several key projects [8]. - The company continues to actively invest in quality road assets, which is expected to support long-term profit growth as traffic volumes increase [8]. Profitability and Dividend Policy - The company recorded a significant decrease in non-recurring income in Q1 2025, leading to a decline in attributable net profit. However, the net profit excluding non-recurring items showed a slight increase, indicating stable performance in the core business [8]. - The company maintains a stable dividend policy, with a slight increase in the dividend per share (DPS) to 0.49 yuan, corresponding to a dividend yield of 3.2% at the current stock price [8].