Dongguan Holdings (000828.CH/ 10.26, unrated) reported revenue of 580 million yuan, up 16% from the same period last year, net profit of 400 million yuan, down 2% from the same period last year, and basic earnings per share of 0.39 yuan.

Bank of China non-Bank comments:

A two-pronged approach of road and bridge + leasing to make up for the downward impact of investment

Driven by the growth of car ownership and economic development, the company's highway business income was 480 million yuan, an increase of 8.5% over the same period last year. Rongtong Leasing, a wholly-owned subsidiary, stepped up market development and deepened the financial leasing business, with revenue of 90 million yuan, an increase of 101.3% over the same period last year, and a net profit of 40 million yuan, an increase of 73.5% over the same period last year. At the same time, affected by the decline in returns in the securities industry, the investment income contributed by associates fell by 45.8%. Due to the soundness of the company's main business, the company's net profit fell by only 2.4% during the reporting period.

The growth of highway traffic flow is remarkable, and the toll business is developing steadily.

With the continuous improvement of the surrounding road network and the realization of the national toll "one network", the traffic flow of Shenzhen Expressway has maintained a growing trend. The flow of toll vehicles reached 36.33 million during the reporting period, an increase of 17.6% over the same period last year. In the face of traffic growth, the company orderly promotes the expansion of toll stations and the construction of new weight lanes, further improves the capacity of toll stations, and promotes the stable development of the company's highway toll business.

The expansion of financial leasing is expected, and the financial layout is still effective.

With the support of Dongguan policy, Rongtong Leasing has a better market opportunity, and its growth potential is further enhanced. After the wholly-owned acquisition of financing leasing, the company will focus on preventing and controlling operational risks, constantly enrich the leasing customer industry, and vigorously expand the financial leasing business. At the same time, the company is actively engaged in foreign investment, shares in Dongguan Securities, Dongguan Trust and other companies, the layout of the financial sector. During the reporting period, the company's investment income was 140 million yuan, accounting for 34.9% of the company's net profit.

1.4 billion plus financing lease to break through the capital bottleneck

The company gives full play to the financial advantages of listed companies and provides support to financing leasing through bank credit and other means. At the same time, the company is scheduled to raise an additional 1.4 billion yuan, all of which will be invested in financing leasing for business, which has been examined and approved by the Securities Regulatory Commission in February this year. After the funds are in place, the financial strength of the leasing will be strengthened, and the scale of the business will be further expanded, gradually becoming the mainstay of the company's profits. It is recommended that you continue to pay attention.