Henan Transportation Investment Group Co., Ltd. became the largest shareholder, which is beneficial to the company's future extended development within the province. “Two roads and one bridge” remains stable. Traffic flow and toll revenue remained relatively stable until the completion of the expansion project due to traffic capacity restrictions on the Zhengluo Expressway, Luozhi Expressway, and the Huanghe Bridge to which the company belongs. The Zheng Yao Expressway is a major attraction. The Zheng Yao Expressway is an important fast track for energy and tourism in the province, with good prospects for future development. There are many projects under construction, and the financial and financial pressure is high. The company currently has 6 projects under construction, with a total investment of 15.5 billion yuan. Capital raising, financial pressure, and the profitability of new business segments have become major factors limiting the company's future performance. Diversified investments are a highlight. Diversified investments cover the fields of real estate, venture capital, and trusts. Although they have not yet reached the full harvest stage, they have shown some expansion results. EPS for 2010 and 2011 is expected to be $0.28 and $0.2, respectively. Due to the decline in performance in 2011, the company's current valuation level has no advantage in the industry, maintaining a “wait-and-see” investment rating. Risk warning: The company's debt ratio is too high, financial pressure is high, and capital expenditure is high; it will face competitive pressure on parallel roads and railways in the future; there is uncertainty about the profitability of the new road section after opening to traffic.
【中原证券】中原高速:拓展速度过快将影响短期业绩
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