Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>Jiangsu Expressway operates a portfolio of core expressway assets in Jiangsu, one of China's most economically developed and densely populated provinces, providing a stable and recurring revenue stream from toll collections.</li>
 <li>The company has a consistent track record of dividend payments, offering an attractive yield supported by strong and predictable operating cash flows, making it appealing for income-focused investors.</li>
 <li>Future growth is expected to be driven by the potential for toll rate adjustments, expansion of ancillary services, and strategic investments in new road and bridge projects, although it faces risks from policy changes and economic sensitivity.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  Jiangsu Expressway operates a portfolio of core expressway assets in Jiangsu, one of China's most economically developed and densely populated provinces, providing a stable and recurring revenue stream from toll collections.
  The company has a consistent track record of dividend payments, offering an attractive yield supported by strong and predictable operating cash flows, making it appealing for income-focused investors.
  Future growth is expected to be driven by the potential for toll rate adjustments, expansion of ancillary services, and strategic investments in new road and bridge projects, although it faces risks from policy changes and economic sensitivity.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Jiangsu Expressway   (600377 CH) - Aug 2026

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>China's toll road sector has gone up by 47.4% since 2022, but it remains an excellent yield play with an average yield of 7.2% and 7.8% in FY24 and FY25.</li>
<li>1Q24 profit is solid, with 3-year forecast earnings CAGR at a healthy 6.5%. <a href="https://www.smartkarma.com/entities/anhui-expressway-co-ltd-h" target="_blank" data-smartkarma-citation="entities:5236:1" rel="noopener">Anhui Expressway H (995 HK)</a> and <a href="https://www.smartkarma.com/entities/jiangsu-express-co-ltd-h" target="_blank" data-smartkarma-citation="entities:9956:1" rel="noopener">Jiangsu Expressway (H) (177 HK)</a> have the most consistent DPS trend.</li>
<li>We like <a href="https://www.smartkarma.com/entities/jiangsu-express-co-ltd-h" target="_blank" data-smartkarma-citation="entities:9956:1" rel="noopener">Jiangsu Expressway (H) (177 HK)</a> for its track record and growth prospects. As a relative underperformer in the sector, it is poised to catch up.</li>
</ul>


China's toll road sector has gone up by 47.4% since 2022, but it remains an excellent yield play with an average yield of 7.2% and 7.8% in FY24 and FY25.
1Q24 profit is solid, with 3-year forecast earnings CAGR at a healthy 6.5%. Anhui Expressway H (995 HK) and Jiangsu Expressway (H) (177 HK) have the most consistent DPS trend.
We like Jiangsu Expressway (H) (177 HK) for its track record and growth prospects. As a relative underperformer in the sector, it is poised to catch up.


China Toll Road Sector: Higher for Longer......Yields

<ul>
<li>By way of its 54.79% ownership in <a href="https://www.smartkarma.com/entities/zheshang-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:29981:1" rel="noopener">Zheshang Securities (601878 CH)</a>, <a href="https://www.smartkarma.com/entities/zhejiang-expressway-co-h" target="_blank" data-smartkarma-citation="entities:2178:1" rel="noopener">Zhejiang Expressway Co H (576 HK)</a> is an attractive indirect vehicle to access the mainland securities sector.  </li>
<li>The attributable market cap of Zheshang equals 90% of ZJE's market cap, implying that the toll road business is almost free. However, Zheshang only contributed 16% of ZJE's 1H24 profit.</li>
<li>ZJE trades on 6.7x FY24F PER, vs. 31.3x for Zheshang and 17.6x for H-share securities companies. A stable toll road business also minimises the risk for ZJE.</li>
</ul>


By way of its 54.79% ownership in Zheshang Securities (601878 CH), Zhejiang Expressway Co H (576 HK) is an attractive indirect vehicle to access the mainland securities sector.  
The attributable market cap of Zheshang equals 90% of ZJE's market cap, implying that the toll road business is almost free. However, Zheshang only contributed 16% of ZJE's 1H24 profit.
ZJE trades on 6.7x FY24F PER, vs. 31.3x for Zheshang and 17.6x for H-share securities companies. A stable toll road business also minimises the risk for ZJE.


Zhejiang Expressway (576 HK): Cheap Access to the Roaring Securities Sector

<ul>
 <li>
Dominant Market Position in a Key Economic Hub: <a href="https://smartkarma.com/entities/jiangsu-expressway-co-ltd-class-h">Jiangsu Expressway</a> operates critical toll road assets in Jiangsu Province, the province with the second-highest GDP in China, ensuring high and stable traffic volumes.</li>
 <li>
Stable Cash Flows and Attractive Shareholder Returns: The company demonstrates consistent positive operating cash flow and a commitment to dividends, offering a high dividend yield.</li>
 <li>
Regulated Environment with Growth Potential: While operating within a government-regulated framework, the company has opportunities for growth through new projects, potential toll extensions, and ancillary service expansion.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Dominant Market Position in a Key Economic Hub: Jiangsu Expressway operates critical toll road assets in Jiangsu Province, the province with the second-highest GDP in China, ensuring high and stable traffic volumes.
  
Stable Cash Flows and Attractive Shareholder Returns: The company demonstrates consistent positive operating cash flow and a commitment to dividends, offering a high dividend yield.
  
Regulated Environment with Growth Potential: While operating within a government-regulated framework, the company has opportunities for growth through new projects, potential toll extensions, and ancillary service expansion.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Jiangsu Expressway (177 HK) - May 2026

<ul>
<li>Excluding an outlier, our coverage universe is expected to witness a 56.6% YoY earnings growth in 4Q25, rapidly accelerating from the previous quarter.</li>
<li>Stocks with the best growth are <a href="https://www.smartkarma.com/entities/xinjiang-goldwind-science-technology-h" target="_blank" data-smartkarma-citation="entities:10112:1" rel="noopener">Xinjiang Goldwind (2208 HK)</a>, <a href="https://www.smartkarma.com/entities/sany-heavy-equipment-intl" target="_blank" data-smartkarma-citation="entities:11104:1" rel="noopener">Sany Heavy Equip. (631 HK)</a>, <a href="https://www.smartkarma.com/entities/dongfang-electric-corporation-limited" target="_blank" data-smartkarma-citation="entities:1251:1" rel="noopener">Dongfang Electric (1072 HK)</a>, <a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free" target="_blank" data-smartkarma-citation="entities:36229:1" rel="noopener">CTG Duty Free (1880 HK)</a>, and <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy (1138 HK)</a>.. </li>
<li>
<a href="https://www.smartkarma.com/entities/china-international-capital-corporation-ltd" target="_blank" data-smartkarma-citation="entities:1071:1" rel="noopener">CICC (3908 HK)</a>, <a href="https://www.smartkarma.com/entities/china-national-building-ma-h" target="_blank" data-smartkarma-citation="entities:184:1" rel="noopener">CNBM (3323 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric (2727 HK)</a>, <a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans (598 HK)</a>, <a href="https://www.smartkarma.com/entities/anjoy-foods-group" target="_blank" data-smartkarma-citation="entities:44280:1" rel="noopener">Anjoy Foods (2648 HK)</a>, <a href="https://www.smartkarma.com/entities/cosco-shipping-ports-ltd" target="_blank" data-smartkarma-citation="entities:360:1" rel="noopener">Cosco Shipping Ports (1199 HK)</a>, and <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a> may upgrade. </li>
</ul>


Excluding an outlier, our coverage universe is expected to witness a 56.6% YoY earnings growth in 4Q25, rapidly accelerating from the previous quarter.
Stocks with the best growth are Xinjiang Goldwind (2208 HK), Sany Heavy Equip. (631 HK), Dongfang Electric (1072 HK), CTG Duty Free (1880 HK), and Cosco Shipping Energy (1138 HK).. 

CICC (3908 HK), CNBM (3323 HK), Shanghai Electric (2727 HK), Sinotrans (598 HK), Anjoy Foods (2648 HK), Cosco Shipping Ports (1199 HK), and Haier Smart Home (6690 HK) may upgrade. 


China & HK Strategy: Stock Implications for 4Q25

China

Jiangsu Expressway Co. Ltd. is primarily engaged in the investment, construction, operation, and management of toll roads and bridges in Jiangsu Province, China. The company also provides ancillary services such as gas stations, catering, retail, advertising, and real estate development in expressway service areas. It was founded in 1992 and is headquartered in Nanjing, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Jiangsu Expressway (177 HK)

Primer: Jiangsu Expressway (600377 CH) - Aug 2026

Jiangsu Expressway operates a portfolio of core expressway assets in Jiangsu, one of China's most economically developed and densely populated...

αSK Primers

China Toll Road Sector: Higher for Longer......Yields

China's toll road sector has performed solidly since 2022, but is still offering attractive yields and healthy profit. Jiangsu Expressway stands...

Osbert Tang, CFA

Zhejiang Expressway (576 HK): Cheap Access to the Roaring Securities Sector

Zhejiang Expressway provides indirect cheap access to mainland securities through its ownership in Zheshang Securities, with a stable toll road...

Osbert Tang, CFA

Primer: Jiangsu Expressway (177 HK) - May 2026

Dominant Market Position in a Key Economic Hub: Jiangsu Expressway operates critical toll road assets in Jiangsu Province, the province with...

αSK Primers

China & HK Strategy: Stock Implications for 4Q25

Expect a 56.6% YoY profit growth in 4Q25 for our coverage universe, with top growth stocks being Xinjiang Goldwind, Sany Heavy Equipment, Dongfang...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Primer: Jiangsu Expressway (600377 CH) - Aug 2026

Jiangsu Expressway operates a portfolio of core expressway assets in Jiangsu, one of China's most economically developed and densely populated...

αSK Primers

China Toll Road Sector: Higher for Longer......Yields

​China's toll road sector has performed solidly since 2022, but is still offering attractive yields and healthy profit. Jiangsu Expressway stands...

Osbert Tang, CFA

Zhejiang Expressway (576 HK): Cheap Access to the Roaring Securities Sector

​Zhejiang Expressway provides indirect cheap access to mainland securities through its ownership in Zheshang Securities, with a stable toll road...

Osbert Tang, CFA

Primer: Jiangsu Expressway (177 HK) - May 2026

Dominant Market Position in a Key Economic Hub: Jiangsu Expressway operates critical toll road assets in Jiangsu Province, the province with...

αSK Primers

China & HK Strategy: Stock Implications for 4Q25

​Expect a 56.6% YoY profit growth in 4Q25 for our coverage universe, with top growth stocks being Xinjiang Goldwind, Sany Heavy Equipment, Dongfang...

Osbert Tang, CFA

China's toll road sector has performed solidly since 2022, but is still offering attractive yields and healthy profit. Jiangsu Expressway stands...

Zhejiang Expressway provides indirect cheap access to mainland securities through its ownership in Zheshang Securities, with a stable toll road...

Expect a 56.6% YoY profit growth in 4Q25 for our coverage universe, with top growth stocks being Xinjiang Goldwind, Sany Heavy Equipment, Dongfang...