With the disclosure of financial reports, the performance of Expressway enterprises was released last year. Overall, the revenue and net profit of Listed Companies in the expressway industry rose sharply last year.
2020 is the first year of the epidemic. The operation of the transportation industry has been seriously affected. In addition, the toll free time of highways has increased by 79 days. In that year, the income of Companies in most industries was declining, and the net profit basically decreased by 40-50%.
In contrast, the interface news statistically analyzed the financial report data of 21 listed companies in the expressway industry. The revenue and profit rose sharply in 2021, mainly because the epidemic prevention and control became normalized last year, vehicle traffic gradually recovered, and the base number in 2020 was low.
Revenue and net profit rose sharply
Within the scope of statistics, there were 5 companies whose net profit increased by more than 100% last year, 8 companies whose net profit increased by 50% – 100%, and the net profit of other companies increased by less than 50%. The increase of operating income of these companies is concentrated in the range of 20% – 70%.
Last year, the revenues of three enterprises in Zhejiang, namely, Shanghai, Hangzhou and Ningbo, Shandong Hi-Speed Company Limited(600350) , Xiandai Investment Co.Ltd(000900) exceeded 16 billion yuan, Jiangsu Expressway Company Limited(600377) , Shenzhen Expressway Company Limited(600548) exceeded 10 billion yuan, and Sichuan Expressway Company Limited(601107) , China Merchants Expressway Network Technology Holdings Co.Ltd(001965) exceeded 8 billion yuan.
The company with the largest increase in revenue was Dongguan Development (Holdings) Co.Ltd(000828) , with an increase of 323%, mainly because its rail transit subsidiary received more than 3 billion capital injection and non business income. In addition, Jiangsu Expressway Company Limited(600377) had the largest increase in revenue, reaching 71.71% The revenue of Sichuan Expressway Company Limited(601107) , City Development Environment Co.Ltd(000885) , Jilin Expressway Co.Ltd(601518) , Anhui Expressway Company Limited(600012) and other enterprises also increased relatively.
Within the scope of statistics, companies with net profit increase of more than 100% include Jilin Expressway Co.Ltd(601518) , Henan Zhongyuan Expressway Company Limited(600020) , Sichuan Expressway Company Limited(601107) , Hubei Chutian Smart Communication Co.Ltd(600035) , China Merchants Expressway Network Technology Holdings Co.Ltd(001965) . The net profit of Zhejiang Huhang Ningbo, Guangdong Provincial Expressway Development Co.Ltd(000429) , Fujian Expressway Development Co.Ltd(600033) , Chengdu Expressway increased by more than 80%.
The highest net profit is China Merchants Expressway Network Technology Holdings Co.Ltd(001965) , with an amount of nearly 5 billion and a profit margin of 57.65%. Zhejiang huhangyong and Jiangsu Expressway Company Limited(600377) have a net profit of more than 4 billion, 60035 a net profit of 3.052 billion and Shenzhen Expressway Company Limited(600548) a net profit of 2.6 billion.
However, the expressways that can be listed are high-quality assets. For example, the Jiangsu section of Shanghai Nanjing Expressway connects six large and medium-sized cities, including Shanghai, Suzhou, Wuxi, Changzhou, Zhenjiang and Nanjing. It is one of the busiest expressways in China. The profitability of listed companies does not mean that the whole high-speed industry is profitable.
In fact, the national expressway industry as a whole is facing a very large gap in revenue and expenditure, and is also burdened with huge debts. In 2020, the national highway revenue and expenditure gap was 717.74 billion yuan, and the national toll road debt balance was 7 trillion yuan at the end of 2020.
Nationwide, after the recovery of commercial passenger traffic in the first half of last year, it showed a downward trend in the second half of the year affected by the sporadic epidemic. In 2021, the highway passenger volume of the whole society decreased by 26.2%, but the highway freight volume increased by 14.2%. It is expected that the overall revenue and expenditure gap will still expand.
The industry tends to be stable and needs to find new growth points
China’s expressway network continues to mature and improve, and the new mileage each year tends to be stable, which has entered a period of stable development. At present, the charging period of a number of earlier expressways in China will expire. For example, starting from March 3 this year, the charging period of Guangfo Expressway will no longer be charged.
Facing the limited increment, industry companies have to develop more businesses and explore industrial transformation at the same time.
As a supporting business of expressway, some areas are doing innovative development. Jiangsu multi place service area has changed the traditional inherent service mode into a shopping center, popular science base and even tourist attractions, and has become an online Red punch in place. Interface news once reported that the service areas under Jiangsu traffic control have turned losses into profits, and the average daily income of some service areas has doubled after the transformation.
Finance, investment, environmental protection, intelligent transportation and other businesses have become new choices for many companies China Merchants Expressway Network Technology Holdings Co.Ltd(001965) in addition to toll revenue, transportation technology and intelligent transportation are also two business segments. Shenzhen Expressway Group is laying out environmental protection and clean energy business Xiandai Investment Co.Ltd(000900) ‘s revenue from financial services and environmental protection has even far exceeded the revenue from tolls.
According to the 14th five year plan for the development of expressways, during the 14th Five Year Plan period, China will newly reconstruct 25000 kilometers of expressways, including 20000 kilometers of new expressways and 5000 kilometers of capacity expansion and reconstruction. The eastern region is dominated by the expansion and reconstruction of busy channels, and the central and western regions are dominated by the construction of the remaining sections to be connected.
In the next few years, the expressway will enter the centralized period of reconstruction and expansion. The reconstructed and expanded sections generally occupy advantageous locations, and the traffic flow and industrial layout have been stable. They can operate with high load without going through the process of cultivating the traffic flow of new roads. In the future, the reconstruction and expansion project may become a secondary development opportunity for Expressway enterprises.
On the other hand, intelligent changes such as smart highway, smart high-speed service area, high-speed digitization and big data management are also the general trend. In these aspects, highway enterprises face competition from technology companies. Huawei has released the traffic agent, Baidu has proposed the product technology path of smart high-speed, Alibaba has jointly released the smart high-speed solution with Gaode, and Tencent has proposed the smart high-speed solution of “digital Antu”.
According to the report released by Saiwen Research Institute, technology enterprises such as Baidu, Tencent, Huawei and Alibaba are gradually taking the initiative in smart transportation, vehicle road coordination and other markets. Among the projects with an amount of more than 100 million last year, the winning proportion of these enterprises is close to 1 / 4.
In terms of passenger and freight transportation volume, roads still occupy a dominant position in China’s comprehensive transportation system, in which road freight accounts for about 70% of the total freight volume of the whole society. The rapid development of logistics and express industry will also support the follow-up road freight volume.
However, the epidemic situation is still an important factor affecting the operation of the industry Shenzhen Expressway Company Limited(600548) said at the performance briefing that the epidemic in Shenzhen and surrounding areas in March this year led to the implementation of temporary traffic control in some areas, and the traffic flow decreased by 10% – 20%.
Since April, the epidemic has spread across the country. In order to prevent and control the epidemic, some provinces and cities have closed some highway toll stations and service areas. According to the big data of Internet of things technology company G7, the national truck traffic in April was about 40% lower than the peak in March, and 15% – 20% lower than the daily average in 2019, which also reflects the impact of highway traffic.
