Analysis Of Expressway Public Company’s Profitability

After highway appears, it has played a pivotal role in China’s economic development. But in recent years,with the improvement of Expressway infrastructure construction, China gradually established socialist market economy status, problems in highway transportation is gradually exposed, such as highway toll issue has become the focus of discussions in the near future.Special cleanup phase of countrywide toll road mapping survey has been concluded at the end of August2011。 As of October16, at least12such as Beijing, Shanghai, Shandong Province announced the toll road mapping survey results. From published survey, The provinces (municipalities) toll road daily income at least thousand million, the per kilometer charges several millions of Yuan every year. In recent years, prices remain high, researchers attributed their high cost of logistics, the logistics cost of tolls also occupies a certain percentage.According to statistics, in2010, China75%of the total transport of goods by road undertaken, transit fees accounted for20%-30%in transport costs. Then the community’s attention of highway industry is growing.Society call highway industry is High-profit industry, so what is the profitability of highway listed companies, in order to reduce logistics costs to reduce logistics costs,Government may reduce the road toll. This measure will how to affect the profitability of highway listed companies. These two problems are the focus of this paper. I have long engaged in financial work in the highway industry, I have a better understanding of the situation of the industry, Also wanted to use my knowledge to the industry for in-depth analysis, So I try my best to contribute to the industry.Then I choose highway industry as the object of my Master’s thesis’ study.This article set off from highway listed company’s market background and profit ability, according to the profitability analysis basic theory and DuPont analysis system, leading by the ROE,the net interest rate and equity multiplier in terms of total assets as the core, analyze sample company’s financial ratios. Quantitative analysis of highway public company’s profitability, and as a case of Shandong highway listed company to research policy change how to impact on highway listed company’s profitability. After the above analysis the following conclusions:Highway industry and China’s economic situation closely, As the national economic situation changes and fluctuations, However, when compared with other industries, the highway industry profitability less volatile, Less affected by the macroeconomic environment, ROE is also much higher than other industries, Confirmed the high profitability of the highway industry, But with the development of the national economy, the improvement of living standards of the people, Highway industry’s profitability being carriage by air and rail transport over; Highway industry in our country is highly profitable trades, Toll revenues reduced5%-10%are still in the context of Highway listed company can sustain, However, road tolls in the listed company’s main business is very large in proportion, highway listed company structure is a single. If the Government wants to implement relief expressway toll policy,still need according to each company’s profitability and future growth in traffic volume and Implement a differentiated policy. It is best not to engage in"One size fits all" policy. Finally, this article according to the results of the analysis makes a number of recommendations for o Expressway public company’s future development.