[ET Net News Agency, 2 September 2019] HSBC Global Research lowered its target price
for Jiangsu Expressway (JSE)(00177) to HK$10.5 from HK$11 and maintained its "hold"
rating.
The research house said JSE's adjusted NPAT was broadly in line with market
expectations. Management maintained toll revenue growth guidance at 4% including the
potential negative impact from ETC (E-tolling) discount.
HSBC said Jiangsu will introduce a new toll system for trucks (from toll by weight to
toll by type) in October 2019. HSBC thinks it may take 3-6 months run-in time to see the
real impact from the new toll system but short term there is downside risk to toll
revenue. (KL)