[ET Net News Agency, 28 August 2018] UBS Global Research lowered its target price for
Jiangsu Expressway (00177) to HK$13 from HK$14.1, and maintained its "buy" rating.
The research house said Jiangsu Expressway's 31% increase of 1H net profit is ahead of
market expectation, representing 60% and 56% of consensus and UBS's estimate full year
estimate. It remains confident on profit upside from service area business.
Management guided stable toll revenue growth for 2018, i.e. there should not be
significant deceleration in 2H. In addition, management highlighted one of the focuses in
1H on following the expressway network planning and investment opportunities in existing
quality expressways, indicating potentially either building new expressways or acquiring
mature expressways. (KL)