Contents

Industry analysis 4
Benefiting from China’s economic growth and car sales 4
Toll-roads dominated by passenger cars are less impacted by
slowdowns in the global economy 5
Traffic growth varies by province 6
No toll rate rises and adoption of weight-based toll standard is a
double sweet spot 7
Long-term asset injection potential 8
Fuel tax scheme is unlikely to be adopted in the near future 9
Valuation 11
Key sector risks 14
Jiangsu Expressway (0177.HK) 15
Initiate with Buy: Top Pick As the Safest Haven 15
Anhui Expressway (0995.HK) 28
Initiate with Buy: Negatives All Look to Be Priced In 28
Zhejiang Expressway (0576.HK) 41
Initiate with Sell: Weakening Fundamentals 41
Shenzhen Expressway (0548.HK) 55
Initiate with Hold: ST Growth Hindered, LT Growth Intact 55
Sichuan Expressway (0107.HK) 72
Initiate with Hold; Fairly Valued 72
Appendix A-1 88
Analyst Certification 88