Golden Finance News | West Securities issued a research report stating that yuexiutransport (01052) is expected to improve the growth of future traffic volume and the sustainability of profits. 1) Overall, the expectation of traffic volume improvement is stronger. 2) The main road project of expanding and renovating the Guangzhou North Second Ring Expressway will increase traffic capacity and significantly extend the toll period. 3) By relying on the "group incubation + injection into listed companies" model, high-quality road assets are acquired to enhance the company's performance.

The bank stated that the company continues to acquire high-quality road assets with a high dividend yield. 1) The company plans to acquire 55% equity of Pinglin Expressway under yuexiutransport Group, which will increase the company's net income; 2) The average dividend payout ratio in the past 5 years was 58.7%, and the expected dividend yield is at a relatively high level among similar listed companies; 3) The company's weighted average remaining toll collection period for controlling road assets is approximately 13.43 years, which is at a relatively long level compared to similar listed companies; 4) The company focuses on road and bridge assets, with high quality of net income from main business operations.

The bank further pointed out that considering the company's mature model of acquiring high-quality road assets (IRR of 9.2% for the Pinglin Expressway that the company is about to acquire); high dividend yield; relatively long remaining toll collection period for road and bridge assets, first-time coverage, and a "buy" rating is given.