Earlier, media reported that CHOW TAI FOOK (00659.HK) is seeking to sell a batch of toll road projects in mainland China for 2 billion USD, which has yet to be confirmed by the company. HSBC's research report indicates that the company's asset sales are not surprising, noting that the company started selling several major projects back in 2018. The proceeds from the sales can be used for Shareholder returns or for acquisitions to create a better growth portfolio. The report suggests that both possibilities are positive, although the market may lean towards the former, presenting a noteworthy positive catalyst. The firm maintains a 'Buy' rating and a Target Price of 8.9 HKD. (vc/k)

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