Guangdong Expressway A (000429): Slight changes in first half results High dividend yield highlights long-term allocation value

Guangdong Expressway A (000429): Slight changes in first half results High dividend yield highlights long-term allocation value
Incident Guangdong Expressway A released its semi-annual report for 2019. In the first half of 2019, Guangdong Expressway A achieved operating income of 14.84 ‰, a decrease of 3 per year.40%; realize net profit attributable to shareholders of listed companies.36 ppm, a decrease of 5 per year.46%.In the first half of 2019, the company achieved zero profit.35 yuan, expected average ROE is 8.39%, a decrease of 0 per year.21 units. A brief comment on the impact of multiple factors such as behaviors and diversions in the short term, the revenue of the holding road industry declined slightly in the first half of the year, mainly due to the decrease in road transportation income.32%.Judging from the operation of the company’s three holding roads: 1) Guangfo Expressway achieved a traffic volume of 35.37 million vehicles in the first half of the year, an annual increase of 19.7%, toll income 2.300 million US dollars, an annual increase of 2.19%. The reason for Guangfo Expressway’s revenue growth far exceeding its traffic growth rate is mainly because from July 1 last year, Guangzhou imposed restrictions on trucks with more than 15 tons. At the same time, the Foshan First Ring has already lifted the ban on goods and free of charge.As a result, the proportion of trucks on the Guangfo Expressway has declined. 2) The traffic volume of Fokai Expressway reached 34.21 million vehicles in the first half of the year, an increase of 4 per year.26%, toll income 6.1.7 billion, a decrease of 3 per year.33%.The reason for the decline in revenue was mainly due to the obvious diversion effect of the second phase of Yunzhan and the first ring of Foshan. 3) The Guangzhu section of the Beijing-Zhuhai Expressway was affected by a combination of multiple factors including the Humen Bridge ‘s partial cargo restrictions, the Nansha Bridge, and the completion of the Pan-Wan Expressway, which reduced the traffic flow in the first half of the year.35% to 34.84 million vehicles, toll revenue is reduced by 5 every year.27% to 6.02 billion. Revenue from equity investment in road products has steadily increased. The expansion of the southern section of Fokai has brought about an extension of the charging period. In addition to the three holding road products, the company has also invested in seven road products such as Huiyan Expressway, Guanghui Expressway, and Yuezhao Expressway., The total equity mileage of the controlling property company reached 264.4 kilometers.In the first half of 2019, the company realized investment income2.76 ppm, a six-year increase 杭州桑拿网 of 6.5%, of which long-term equity investment income calculated by equity method is 2.38 ppm, a ten-year increase of 9.At 7%, the reported profit of the equity investment in road property achieved a number of solid growth.In addition, the expansion project of the company’s southern section of Fokai is still progressing steadily, and the project progress has reached 58.87%, it is expected to be completed by the end of 2020, when its charging period will be extended, and the bicycle charging standard will also be increased. The cash cow attribute highlights the long-term allocation value. The first coverage gives the company an overweight rating in 2018, and the company is subdivided into 0.562 yuan (including tax), the dividend ratio is 70%, which corresponds to the current dividend yield of 7.30%.Considering that the 都市夜网 company’s road products are located in economically developed areas, future traffic flow can be guaranteed. Due to the company’s cash cow attributes, the company still tried to maintain a 70% dividend ratio in 19-20.We expect the company’s revenue levels to reach 32 respectively in 2019-2021.3.7 billion, 33.3.1 billion, 34.380,000 yuan, the net profit attributable to the owner of the parent company was 16 respectively.7.8 billion, 17.310,000 yuan, 17.990,000 yuan, corresponding to 0 EPS.80 yuan, 0.83 yuan, 0.86 yuan, for the first time, the company was given an “overweight” rating.