Event: Guangdong Expressway A released its annual report in 2021 and quarterly report in 2022: in 2021, the company realized operating income of 5.288 billion yuan, an increase of 39.51% over the same period last year (adjusted), and an increase of 5.78% over 2019 (adjusted). The net profit of returning home was 1.7 billion yuan, an increase of 95.93% over the same period last year (after adjustment), an increase of 15.74% over 2019 (after adjustment), and the basic EPS in 2021 was 0.81 yuan. The net profit after deducting non-return was 1.693 billion yuan, an increase of 140.22% over the same period last year. In the first quarter of 2022, the company achieved operating income of 1.066 billion yuan, down 15.25% from the same period last year; the net profit returned to its mother was 430 million yuan, up 7.98% from the same period last year, and the basic EPS was 0.21 yuan.

In 2021, the company plans to pay a cash dividend of 5.70 yuan (including tax) for every 10 shares, with a dividend ratio of 70%, corresponding to the closing price of 7.93 yuan on April 26, 2022, and the dividend yield of 7.19%.

Comments:

Revenue and performance grew rapidly in 2021 compared with the same period last year, benefiting from the completion of reconstruction and expansion projects and the synergy of the road network, both of which have exceeded the 2019 level. In 2021, the company's operating income reached 5.288 billion yuan, an increase of 39.51% over the same period last year (adjusted), and 5.78% compared with 2019 (adjusted). Among them, the total toll income of the four holding companies was 5.17 billion yuan, up 41.04% from the same period last year. Guanghui Expressway contributed the most tolls, accounting for 2.126 billion yuan, accounting for 40.21% of the total revenue. In 2021, the company realized a net profit of 1.7 billion yuan, an increase of 95.93% (adjusted) over the same period last year and 15.74% (adjusted) over 2019. The company's rapid growth in revenue and performance in 2021 compared with the same period last year is due to the 79-day exemption of highway tolls during the 2020 epidemic. The income and performance have exceeded the 2019 level, because: 1) due to the opening of the Kaiyang Expressway on December 20, 2020, the capacity of the main road has been greatly increased, and ETC trucks enjoy a 15% discount when running on the Kaiyang Expressway. Due to the influence of the reconstruction and expansion construction of the Kaiyang Expressway, the vehicles of the Kaiyang Expressway were diverted back to the Fokai Expressway, and the traffic flow was induced. 2) Huacheng Expressway and Hehuiyang Expressway will be opened at the end of 2020 to attract

Risk hints: the economic downturn leads to a decline in traffic flow, changes in charging policies, reinvestment risks and so on.