Highway stocks continued their recent gains. As of press release, Shenzhen International (00152) rose 4.85% to HK$6.48; the Anhui Wantong Expressway (00995) rose 4.24% to HK$8.6; the Jiangsu Ning—Shanghai Expressway (00177) rose 3.93% to HK$8.19; and the Sichuan-Chengdu-Chongqing Expressway (00107) rose 1.61% to HK$2.53.
The Zhitong Finance App learned that highway stocks continued their recent gains. As of press release, Shenzhen International (00152) rose 4.85% to HK$6.48; Anhui Wantong Expressway (00995) rose 4.24% to HK$8.6; Jiangsu Ninghu Expressway (00177) rose 3.93% to HK$8.19; and Sichuan Cheng-Chongqing Expressway (00107) rose 1.61% to HK$2.53.
CITIC Securities released a research report stating that the style of seeking high certainty is expected to further enhance the valuation center of highways, and the policy-side top-level design will continue to release benefits if the “Toll Road Administration Regulations (Revised Draft)” are implemented or added to the cake; in review history, highway defensive attributes are highlighted, highlighting the advantage of high dividends in the context of low interest rates; compared with overseas, the domestic highway revenue gap is about 400 billion dollars. It is expected that the toll rate of state-owned capital revenue will increase steadily; in the context of the increase in the share of government financial resources, the dividend rate of central state-owned enterprises will further increase possible.
The bank pointed out that the State Assets Administration Commission continues to emphasize the need to focus on improving the quality of listed companies. It is expected that there is a possibility that the dividend rate of central state-owned enterprises will be further improved. If it is raised, it will not only recognize the value of central state-owned enterprises by the capital market, but also become an important increase in government revenue. Compared to cyclical high dividend rate targets, the highway sector may have more allocation value due to its more stable cash flow dividends and undervaluation. Furthermore, in the context of low interest rates, it is expected that an active dividend payment policy may be a powerful tool for central state-owned enterprises to manage the market value. Combining the style of seeking high certainty is expected to further enhance the valuation center of expressways.