[ET Net News Agency, 7 November 2017] Citi Research upgraded Zhejiang Expressway
(ZJE)(00576) to "buy" from "neutral" after the stock was down 5% over the past week on the
3Q results but on sentiment only rather than fundamentals.
It also lifted its target price for the stock to HK$10.7 from HK$10.
Citi attributed the stock decline on investors looking into ZJE's worsening brokerage
business amid a weak A-share trading turnover. This dragged ZJE's valuation below
historical averages again in terms of PE and PB, presenting attractive 2017/18 dividend
yield at 4.9% and 5.4% respectively.
In addition, the research house thinks 3Q results were not that bad since the toll roads
performance with an organic revenue growth of 19% was impressive despite a low base, and
this eased Citi's concerns on toll roads performance amid a high base going forward.
As such, it raised its earnings forecasts by 1-4% for 2017-2019. (KL)
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00576 ZHEJIANGEXPRESS
Nominal 
5.130 +0.050 (+0.984%) Others
07/11/2017 17:39
[I-bank focus]Citi ups Zhejiang Expressway (00576) to "buy"
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