Changes in Hong Kong stocks | Yuexiu Transport Infrastructure (01052) rose nearly 4% at the end of the session. The company plans to acquire Pinglin Expressway and sell Jinxiong Expressway

The Zhitong Finance App learned that Yuexiu Transport Infrastructure (01052) rose nearly 4% at the end of the session. As of press release, it had risen 3.73% to HK$3.89, with a turnover of HK$17.4983 million.

According to the news, Yuexiu Transport Infrastructure announced that it plans to acquire 55% of the shares in Pinglin Expressway in Yuexiu, Henan, with a total transaction price of 758 million yuan. Huatai Securities pointed out that the project is located in the core development area of the Central Plains urban agglomeration. The area is densely populated, and the surrounding road network is mature and stable. The purchase consideration was 758 million yuan, and the equity IRR was about 9.2%. If the project is completed by the end of the year, we expect net profit to increase by about 70 million yuan in 2025, an increase of about 9%.

The bank pointed out that on the evening of September 30, the company announced plans to sell 60% of the shares in Tianjin Jinxiong Expressway, and the transaction consideration has not yet been determined. In 2023, 60% of Jinxiong Express's shares contributed about 0.7% to Yuexiu's profit. We believe that the above deal will revitalize road production resources and enhance the company's profitability. Furthermore, an overseas interest rate cut cycle has begun, which is beneficial to the restoration of high-dividend asset valuations of Hong Kong stocks.