建造期收入大幅增长，公司主业收入增长。1H2024 公司营收同比增长39.6%，主要由于对路桥项目的建设投入同比增加，公司建造期收入相应增长所致。（1）通行费收入：1H2024 公司控股路网加权平均流量同比上升4.7%，其中公司主要路产沪宁高速江苏段通行量同比上升2.2%。受益于车流量增加，公司收费公路业务实现营收45.3 亿元，同比增长0.16%；实现毛利27.5 亿元，同比减少5.8%，主要受经营路网通行量上升影响，公路经营权摊销相应增加；以及沪宁高速等路段开展集中养护，道路养护成本相应增加。Brief performance review
On August 27, 2024, the Ninghai-Shanghai Expressway released the 2024 semi-annual report. 1H2024 achieved operating income of 9.96 billion yuan, a year-on-year increase of 39.6%; net profit to mother of 2.75 billion yuan, an increase of 10.7% year-on-year. Among them, Q2 achieved operating income of 6.49 billion yuan, an increase of 85% over the previous year, and achieved net profit of 1.502 billion yuan to mother, an increase of 19.7% over the previous year.
Management analysis
Revenue during the construction period increased dramatically, and the company's main business revenue increased. 1H2024's revenue increased 39.6% year on year, mainly due to the year-on-year increase in construction investment in road and bridge projects, and the corresponding increase in the company's revenue during the construction period. (1) Toll revenue: The weighted average traffic of the road network controlled by 1H2024 increased 4.7% year on year. Among them, traffic volume on the Jiangsu section of the company's main road products, the Shanghai-Nanjing Expressway increased 2.2% year on year. Benefiting from increased traffic, the company's toll road business achieved revenue of 4.53 billion yuan, a year-on-year increase of 0.16%; achieved gross profit of 2.75 billion yuan, a year-on-year decrease of 5.8%, mainly affected by the increase in traffic volume of the operating road network, and a corresponding increase in road management rights amortization; and centralized maintenance was carried out on sections such as the Shanghai-Nanjing Expressway, and road maintenance costs increased accordingly.
(2) Construction period revenue/cost: 1H2024 achieved 4.02 billion yuan in revenue/cost during the construction period, an increase of 300.3% over the previous year. The main reason is that the company promoted the pre-construction work of the Xitai project and invested 2.82 billion yuan in construction capital. The Xitai project will commence in the second half of 2024.
Gross margin declined year over year, and return on investment increased dramatically. In 1H2024, the company achieved a gross profit margin of 30.03%, a year-on-year decrease of 14.94 pcts, mainly due to a sharp increase in revenue during the construction period with zero gross profit. In terms of the cost ratio, the 1H2024 company's cost rate for the period was 5.8%, down 3.2 pct year on year, of which the management expense ratio was 1.07%, down 0.47 pct year on year, mainly due to the corresponding reduction in employee remuneration after the subsidiary transferred shares in the factoring company; the financial expense ratio was 4.77%, a decrease of 2.7 pct year on year, mainly due to the company lowering interest rate on interest-bearing liabilities and reducing waste costs. 1H2024 achieved investment income of 1.05 billion yuan, an increase of 71% year over year, mainly due to the earlier dividend time of Bank of Jiangsu in the reporting period compared to 2023 (July dividend completed in June) and the year-on-year increase in investment income contributed by joint ventures.
The renovation and expansion projects are progressing steadily. 1H2024's various renovation and expansion projects are progressing steadily. The Longtan Bridge project is expected to be completed by the end of 2024 and opened to traffic in early 2025. The Longtan Bridge North Connection Project is expected to be completed and opened to traffic within 2025. The southern section of the Xiyi Expressway is expected to open to traffic in 2026. Pre-construction work has begun on the Xitai project, which is expected to be completed in 2028.
Profit Forecasts, Valuations, and Ratings
Considering the decline in vehicle traffic growth, the company's 2024-2026 net profit forecast was adjusted to 4.64 billion yuan, 5.42 billion yuan, and 6.2 billion yuan (originally 4.84 billion yuan, 5.82 billion yuan, 6.19 billion yuan) to maintain the “buy” rating.
Risk warning
Economic restoration falls short of expectations, progress of ongoing construction falls short of expectations, changes in highway toll policies, risk of market style changes
