China's Zhejiang Expressway nine-month revenue rises year-on-year

Overview

• China toll road operator's nine-month revenue rose yr/yr

• Net income attributable to owners for nine months slightly declined yr/yr

• Higher operating costs and lower investment gains weighed on profit growth

Outlook

• Company did not provide specific guidance or outlook for future quarters or the full year in the press release

Result Drivers

• INTEREST INCOME - Co said higher interest income contributed to revenue growth

• OPERATING COSTS - Increased operating costs weighed on profit for the period

• INVESTMENT GAINS - Lower securities investment gains reduced profit growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the highways & rail tracks peer group is "buy."

• Wall Street's median 12-month price target for Zhejiang Expressway Co Ltd is HK$7.65, about 27.2% above its October 29 closing price of HK$6.02

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• Oct 29 - China's Guangshen Rail nine-month revenue rises 4.5%, profit falls

• Oct 27 - Guangdong Investment 9M revenue rises on water resources strength

• Oct 29 - CIMC Group nine-month revenue up 8.3% on higher container sales volumes

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)