Toll-road investor Road King Infrastructure forecasts better than expected whole year profits due to increased toll revenues. Chief executive Ko Yuk-bing said 14 of the 16 roads invested in by Road King had monthly contributions to the company of 30 million yuan (about HK$27.96 million). 'We expect the income from these roads will be further increased in the next few months because traffic flows are growing at a steady pace,' he said. 'We still have two roads under construction and they will start to generate income later this year.' The eastern section of the Shenzhen Jihe Expressway and the Guangxi Yulin City Ring Road are expected to be completed soon. Mr Ko said traffic volume at the completed roads recorded an average 10 per cent growth per month while the toll per vehicle and overall income had increased 20 per cent. He was confident Road King's performance would better the forecast of a combined profit after tax this year of not less than HK$180 million, made six months ago when it listed last July. It reported a $110.6 million profit in the six months to September last year. Mr Ko said the company was negotiating projects in coastal and inland provinces including Fujian, Zhejiang, Anhui and Sichuan, after signing a contract with the Anhui provincial government to buy a 60 per cent stake in the Bengbu Highway. Another project in Anhui, the 86-kilometre Hehuai Expressway, may be concluded soon. Mr Ko said Road King was not shifting its emphasis from coastal provinces but was attracted by the potential of the inland market. 'Some inland cities have huge potential - quality roads being built with good traffic flows,' he said. 'On the other hand, they need new funds to expand the road networks.' He said all projects invested in by Road King were generating a 'reasonable' return to the company and shareholders. Road King would concentrate on toll-road development in the first three years after listing in accordance to commitments made last year. 'We may look at the opportunities in ports or other infrastructures in future, but we won't be involved in property investment,' Mr Ko said. Last week, Road King secured a US$138 million five-year term syndication loan. Mr Ko said part of the funds would be used to pay for six projects committed to recently and the rest would be used for new investments. He said Road King's gearing was only 40 per cent, allowing room for other financing. 'We won't launch any placement in the foreseeable future because our projects have enough ability to raise funds,' he said.