SRBC(600039) GOLDEN SUN SECURITIES·2024-07-19 02:31Investment Rating - The report maintains a "Buy" rating for Sichuan Road and Bridge (600039.SH) [3] Core Views - The company is expected to participate in nearly 100 billion yuan single projects through an integrated investment and construction model, which is anticipated to support stable future performance. The estimated investments for three highway projects are 247 billion, 565 billion, and 182 billion yuan, totaling 994 billion yuan, which represents 86% of the company's 2023 revenue [1] - The current dividend yield is approximately 7.5%, with potential for high dividends in the medium to long term. The company plans to distribute no less than 50% of its net profit attributable to shareholders as cash dividends annually, barring special circumstances [1] - The establishment of two clean energy subsidiaries indicates ongoing expansion in the power operation business, with a significant increase in revenue from clean energy projects [1] Summary by Sections Investment and Construction Model - The company is forming a consortium with related and non-related parties to bid for major highway projects, which could significantly enhance its order book and profitability [1] - The self-financing capital ratio for the project is 20.2%, allowing the company to participate with a relatively small capital outlay of approximately 2.0 billion yuan [1] Dividend Policy - The company has a clear shareholder return plan, aiming for a minimum of 50% payout ratio of net profit attributable to shareholders, which is expected to maintain a high dividend yield [1] Clean Energy Initiatives - The company is partnering with Sichuan Investment Group to establish two clean energy companies, focusing on power project development, which aligns with regional energy planning [1] - The clean energy segment has shown significant growth, with a revenue increase of 130% year-on-year, indicating a strong potential for future expansion [1] Financial Projections - The report projects net profits for 2024-2026 to be 93 billion, 101 billion, and 108 billion yuan respectively, with corresponding EPS of 1.06, 1.15, and 1.24 yuan [2][10] - The current price-to-earnings ratio is projected to be 6.7, 6.2, and 5.7 for the years 2024, 2025, and 2026 respectively, indicating attractive valuation levels [2][10]