Anhui Expressway bucks positive trend of key rivals
H share Anhui Expressway has posted a 5.5 per cent year-on-year fall in first-half net profit, disappointing analysts who expected 6 to 8 per cent growth and failing to emulate the profit growth of rivals.
The highway builder and operator in east China's Anhui province posted a net profit of 151.4 million yuan (HK$141.93 million), compared with 160.15 million yuan during the same period last year.
Fellow H share Zhejiang Expressway earlier this week posted 10.3 per cent growth in first-half net profit to 492.14 million yuan, while Jiangsu Expressway grew 14.09 per cent to 490.52 million yuan. Shenzhen Expressway's net profit rocketed 314.28 per cent to 758.95 million yuan, but if a one-time toll road disposal gain is stripped out, its profit actually fell 13.27 per cent.
Anhui Expressway's first-half turnover rose 13.2 per cent to 388.9 million yuan from 343.5 million yuan a year ago.
Core Pacific-Yamaichi estimated the company's first-half profit would grow by 6 per cent to 170 million yuan, mainly driven by the growth in traffic on its Xuanguang and Gaojie expressways.
First-half average daily traffic flow at Xuanguang Expressway rose 9.3 per cent and Gaojie Expressway 24.9 per cent.
CM-CCS Securities estimated a 7.82 per cent net profit increase, citing revenue contribution from the Anhui section of Lianhuo Expressway which was acquired at the beginning of this year. Anhui Expressway's major revenue source, flagship Hening Expressway, was hit by the Sars outbreak, with average traffic flow dropping 2.5 per cent in April and May.