Guotai Haitong: Maintains a buy rating on ANHUIEXPRESSWAY (00995), raises target price to HK$19.44.

Guotai Haitong released a research report, stating that the transportation dividend is preferred, and maintaining a rating of "increase holding" for ANHUI EXPRESSWAY (00995). Considering equity investments in Shandong Hi-speed and Shenzhen Expressway Corporation, the net profit forecast for 2026-2027 is raised to 2.1/2.0 billion Chinese yuan (impacted by expansion and renovation), with an additional forecast of 2.2 billion Chinese yuan for 2028. The target price is raised to HK$19.44, corresponding to a PE ratio of 14 times for 2026. Assuming a dividend payout ratio of 60%, the estimated dividend yield for 2026 is 4.9%. Guotai Haitong's main points are as follows: - Profit growth before tax in 2025, with Q4 being dragged down by income tax. - The company benefited from the acquisition of group road assets in 2025, achieving a net profit attributable to the mother of 1.88 billion yuan, with a slight decrease of 1.6% when retrospectively adjusting for 2024 on the same basis. The increase in pre-tax profit was 2.5% year-on-year, but the income tax increase in Q4 of 2025 dragged down performance. - The company's other road assets (excluding Guangxuan) saw a 4% year-on-year growth in toll revenue, with location advantages ensuring better growth than the industry. - The slight decrease in performance in Q1 2026 is attributed to fair value changes, but transportation demand remains resilient. Cross-regional equity investments will help boost performance. The company subscribed to 1.5% of Shenzhen Expressway Corporation's (600548.SH) additional share offering in March 2026, and subsequently further purchased Shenzhen Expressway Corporation's A-shares on the stock exchange, with holdings reaching 3.68% by the end of March. Taking into account stable dividend policies, it is estimated that the company's performance could increase by approximately 20 million yuan in 2026. Risk Warning: Economic fluctuations, industry policies, reinvestment risks, market style changes, etc.