This morning I added some shares in Anhui Expressway (995) to the portfolio. I paid an average of HK$4.33 per share.
The company has little debt, a reasonable ROE and offers a solid trailing dividend yield of 5.9% (which I expect to be at least maintained). As far as I can tell, there are neither material capex obligations in the near future nor plans for competing toll roads in the pipeline (although I do not take the latter for granted given the infrastructure spending binge which China is on at the moment). Rising levels of private car ownership and continued economic growth should result in continuing growth in revenue.
I also realise that I now have three toll road companies in the portfolio which is enough exposure to this sector.
Post a Comment