Shenwan Hongyuan Group Co., Ltd. has issued a research report initiating coverage on ANHUIEXPRESSWAY (00995) with an "Add" rating. The brokerage forecasts net profit attributable to shareholders for ANHUIEXPRESSWAY's H-shares for 2025-2027E to be RMB 1.955 billion, RMB 2.002 billion, and RMB 2.119 billion, representing year-on-year growth of 17%, 2%, and 6% respectively. ANHUIEXPRESSWAY possesses high-quality assets and a significant locational advantage, with its primary operations situated in the economically vibrant Yangtze River Delta region. Combined with profitability that ranks among the top in the industry and strong stability, the brokerage believes a reasonable valuation for ANHUIEXPRESSWAY's H-shares in 2026 should be 11x P/E. This implies a potential upside of 5.13% compared to its H-share market capitalization of RMB 20.4 billion as of February 24, 2026. Key points from Shenwan Hongyuan's report are as follows:

Core toll road assets are based in the Yangtze River Delta, with expansion efforts driving high performance growth. All of ANHUIEXPRESSWAY's toll road assets are located within Anhui Province, primarily consisting of major national trunk highways traversing the region, granting a distinct locational advantage. As of June 30, 2025, the company's operated highway mileage was approximately 745 kilometers. Additionally, the company provides entrusted management services for Anhui Transportation Holding Group and other provincial expressway asset owners, bringing the total highway mileage under its management to 5,397 kilometers. Most of the company's operated assets are inter-provincial trunk expressways located in the Yangtze River Delta plain, benefiting from high economic development levels. Since its listing, ANHUIEXPRESSWAY has continuously deepened its presence in Anhui's expressway resources, completing acquisitions of several provincial expressway companies in 2003, 2005, 2012, 2021, and 2025, thereby gaining control of multiple high-quality road assets. Anhui Province is rich in operational expressway resources, and coupled with the红利 of robust local economic development in recent years, the company is well-positioned to benefit from the industry trend of securitizing high-quality provincial road assets. Regarding capacity expansions, the company has successively completed upgrade and expansion projects for the Hefei-Ningbo, Xuancheng-Guangde, and Ningguo-Xuancheng-Hangzhou expressways, and officially commenced the Gaohe-Jiezi expressway expansion project in 2025.

The company maintains a high dividend payout ratio, with leading profitability and capital structure. ANHUIEXPRESSWAY's H-share dividend payout ratio has remained at a high level over the long term, consistently providing stable and substantial returns to shareholders. Since 2021, the company's payout ratio has increased to around 60%, maintaining this level through 2022-2024. The company's shareholder return plan for 2025-2027 states that, subject to meeting cash dividend distribution conditions, the annual cash distribution over the next three years will not be less than 60% of the net profit attributable to owners of the parent company stated in the consolidated financial statements for that year. This substantial dividend commitment demonstrates the company's high regard for shareholders and its firm dedication to long-term value回报. ANHUIEXPRESSWAY's H-shares exhibit leading profitability and capital structure within the industry. The company's ROE for the third quarter of 2025 was 11.45%, higher than industry peers, and its ROE levels from 2020-2024 were in the upper tier of the industry, indicating strong profitability. From a capital structure perspective, ANHUIEXPRESSWAY's H-share asset-liability ratio has remained at a low level within the industry from 2020-2024, providing a solid financial safety cushion for business expansion and strategic布局.

Risk warnings include potential declines in traffic volume, risks associated with major project acquisitions and mergers, and risks related to daily operational safety production incidents.