Mainland toll-road stocks have been given a cautiously optimistic assessment in a USB Warburg report.
The report, released last week, analysed differences among three SAR-listed toll-road companies - Zhejiang Expressway, Jiangsu Expressway and Shenzhen Expressway.
'We believe toll-road companies will be the biggest beneficiaries of an expected boom in vehicle demand in China,' the report said.
Among the three, Zhejiang Expressway was chosen as the 'top pick' in the sector.
'Zhejiang Expressway benefited from the provincial consolidation of the toll collection network, in which the company was allowed to migrate toll roads into the provincial network without changing its toll rates.
'In other words, there should be limited risk for Zhejiang Expressway to cut tolls,' the report said.
The fee-cut risk was also slim for Jiangsu Expressway.