1. The company currently invests in many projects and has some room for long-term development. The Zhongyuan Expressway currently has a relatively large number of investment projects. Although these projects will put some pressure on the company's operations in the short term, they will enhance the company's future profitability in the long run. In terms of road and bridge construction, the Zhengshi Expressway has already been completed and opened to traffic. Although it is currently not profitable, it can eventually increase the company's profits after a period of cultivation. The Yongbohuai Expressway Shangqiu section project, the Zhengxin Yellow River Bridge project, and the Zhengluo Expressway renovation and expansion project are all currently under construction. After these projects are completed and opened to traffic, the company's profitability will increase after a certain period of development. Other investment aspects: The company invests in Zhongyuan Trust. As the trust industry begins to boom, this investment is expected to bring ideal returns to the company. In addition, the company's investment in the real estate industry will also bring revenue expectations to the company. 2. The company's current price is quite low, and there is not much room for continued sharp declines. 3. There will be a certain decline in 2008 performance. (1) The company's revenue growth rate is slow. Since the company's main source of revenue, high-speed passenger traffic from Zhengzhou to Zhumadian, is already saturated, revenue has not increased, and other projects are not ideal. The company's revenue growth in 2008 was slow, but costs increased a lot. As a result, the company's profit level declined in 2008. (2) The Zhengshi Expressway is in a state of loss. Since the opening of the Zhengshi Expressway at the end of last year, interest capitalization was stopped, and interest on loans was directly included in current financial expenses. At the same time, projects under construction were converted to fixed assets and intangible assets, increasing project asset depreciation, amortization expenses, and related operating costs accordingly. The increase in revenue required a process, making the project lose a lot during the current period. (3) The National Highway 107 toll project is difficult to make a profit. The company's investment in the National Highway 107 toll project was originally to solve the traffic reduction problem caused by the Zhengluo Expressway renovation and expansion project. Since the expansion project was not carried out on schedule, the National Highway 107 toll project is in a state of loss, and it is difficult to improve it in the future. 4. The Anyang-Xinyang first-class highway Zhumadian border project will have an adverse impact on the company.
【民生证券】中原高速调研-长期看好,中短期看淡
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