Merrill Lynch reiterated that Hopewell Highway Infrastructure (0737.HK)'s underperforming market rating was HK$4.05; it believes that FY10 results will be affected by the reduction in interest income due to the special cash dividend (HK$0.84 per share) last year, and the actual tax rate was raised from 15% to 16%, so it is estimated that the medium-term interest rate will be HK$0.17 per share. Merrill Lynch also indicated that the company's capital expenditure will peak in 2010, but due to its high interest rate policy, it is expected that its total cash flow for fiscal year 10-12 (after dividend) will remain negative. Hopewell Highway rose 0.62% yesterday to close at HK$4.9.