1、Asia Pacific Equity Research06 March 2025J P M O R G A NChina TollroadsGearing up for anticipated policy change,re-rating optimism in sight;assume coverage of China tollroads with Jiangsu Exy-H as top pickThis material is neither intended to be distributed to Mainland China investors nor to provide

2、securities investment consultancy services within the territory of Mainland China.This material or any portion hereof may not be reprinted,sold or redistributed without the written consent of J.P.Morgan.Infrastructure,Industrials&TransportJenny Qiu,CFA AC(852)2800 J.P.Morgan Securities(Asia Pacific)

3、Limited/J.P.Morgan Broking(Hong Kong)LimitedKaren Li,CFA(852)2800-J.P.Morgan Securities(Asia Pacific)Limited/J.P.Morgan Broking(Hong Kong)LimitedSunny Su(852)2800 J.P.Morgan Securities(Asia Pacific)Limited/J.P.Morgan Broking(Hong Kong)LimitedYu Gu(86-21)6106 J.P.Morgan Securities(China)Company Limit

4、edJingya Zhang(86-21)6106 SAC Registration Number:S1730524080004J.P.Morgan Securities(China)Company LimitedWe assume coverage of the China tollroads sector with a positive view,seeing the space poised for a valuation multiple re-rating as the investment thesis shifts from stable and defensive.We ant

5、icipate that the finalization of the“Amendments to National Tollroad Regulation”,aimed at protecting tollroad operators interests,could significantly reshape the sectors investment narrative.Our pecking order is Jiangsu Exy H(177 HK,Overweight)Zhejiang Exy H(576 HK,OW)Jiangsu Exy A(600377 CH,Neutral

6、).Our top pick is Jiangsu Exy H,as we expect it to benefit from the policy change due to its ongoing road expansions and a 5.6%dividend yield offering a cushion amid market volatility.We also favor Zhejiang Exy,as it appears to be cheapest among tollroad names,with a 5.9x FY25E P/E,4.7x FY25E EV/EBI