Major Bank Rating | CMB International: Lowering the target price of Yuexiu Transport Infrastructure to HK$7.2 to maintain a “buy” rating

Gelonghui Finance · Mar 6 21:51

CMB International published a research report stating that Yuexiu Transport Infrastructure's net profit in 2023 increased 69% year-on-year to 765 million yuan. After being adjusted by 100 million yuan of non-cash impairment of the Shantou Bay Bridge, the company's nuclear profit increased 91% year-on-year to 865 million yuan, 10% and 8% lower than the bank's and market expectations, respectively. In addition, CMB International lowered Yuexiu Transport Infrastructure's profit forecasts for 2024 and 2025 by 7% and 3% respectively, mainly due to the assumption that the company's gross margin will decline due to traffic diversion and the decline in traffic flow forecast for the Guangzhou North Second Ring Expressway (GNSR). As a result, CMB International lowered the target price for Yuexiu Transport Infrastructure from HK$7.5 to HK$7.2, maintaining a “buy” rating. The bank also expects that China Merchants Highway's recent increase in Yuexiu Transportation Infrastructure shares will not only help support the company's stock price, but also mean progress in the potential injection of assets into the Pinglin Expressway in Henan.

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大行评级｜招银国际：下调越秀交通基建目标价至7.2港元 维持“买入”评级

Major Bank Rating | CMB International: Lowering the target price of Yuexiu Transport Infrastructure to HK$7.2 to maintain a “buy” rating

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大行评级｜招银国际：下调越秀交通基建目标价至7.2港元维持“买入”评级