Shenzhen Expressway purchased

This morning I added Shenzhen Expressway (548) to the private portfolio, paying HK$3.73 per share. When I started buying individual stocks in May 2009, I initially preferred other toll road operators which had lower gearing and less exposure to the export sector. Recent results and data suggest that the company is seeing meaningful revenue increases on a number of roads. Given the leverage on the balance sheet and the continued low interest rate environment, this gives me a basis for expecting profits to increase and, possibly, for the current yield of 3.6% to be enhanced.