The highway business was further affected by policy in 2013.

Since June 1, 2012, the implementation of the new toll standards and the introduction of the national holiday highway minibus free passage policy have led to a reduction in the company's highway business operating income, and the related negative impact has been reflected in the company's 2012 performance. Due to the introduction of relevant policies and mid-2012, the negative impact of Huiyan Expressway, a subsidiary of Huiyan, continued in 2013. Xiangtan Sihang Bridge is expected to further expand its impact on performance in 2013 due to the gradual maturity of the industrial park and the increase in private car traffic.

Investment income is expected to increase steadily in 2013

Judging from the situation in the first quarter of 2013, the container throughput of Yantian International Container Terminal increased by 6.35% year-on-year (higher than Shenzhen Port's 3.66%), but lower than the 8.2% growth rate of coastal ports. The overall increase has slowed compared with 2012, due to poor shipping companies, more preferential handling rates, and higher labor costs and fuel costs, the growth rate of container handling business is expected to slow further.

The throughput of Caofeidian Port Co., Ltd., which is owned by the company, increased significantly in 2012 and maintained a high growth rate in the first quarter of 2013, but it is expected that the growth rate will gradually slow down over time.

Investment attractions and investment ratings

Considering the long construction period of Huizhou coal terminal, the main focus of the company still lies in the equity injection of Yantian International Container Terminal (Phase III) and the performance growth brought about by the recovery of external demand. in the short term, the rapid growth of Caofeidian Port Co., Ltd. can bring certain growth to the company's investment income.

The company is expected to have greater downside risks in road business in 2013, container terminal business growth rate remains low, the company is expected to achieve EPS0.214 yuan in 2013, year-on-year improvement is not obvious, given a "hold" rating.

Risk hint

The recovery of foreign trade is lower than expected; there is great uncertainty in asset injection; and the increase in labor costs is higher than expected.