In the current financial market environment, investors' demand for high-dividend and low-valuation assets continues to increase. Investor demand for fixed income assets is also increasing due to concerns about the future economy and the continued decline in Treasury yields. At the same time, the Ministry of Finance issued the "Notice on Guiding the Long-term and Steady Investment of Insurance Funds", which has further promoted the entry of insurance funds into the market, bringing a large amount of long-term funds to the market.
Against this backdrop, the transportation of infrastructure assets has become the direction of attack for fixed income investors. For defensive and fixed income investors, choosing the highway** is a good choice. However, it should be noted that the increase in first-tier highway ports has been larger, and the cost-effectiveness of second-tier dividends has gradually become prominent.
Among the second-tier expressways, the dividend yields of Chutian Expressway, Fujian Expressway, and Sichuan Chengdu-Chongqing are respectively. 2%, and the average toll life of the remaining roads is about 15 years, 5 years, and 13 years respectively. The risk points of these companies need to be communicated and evaluated by investors.
In addition, as a high-quality asset in the Bay Area, Shenzhen International owns 500,000 square meters of residential area to be developed in Longhua District, Shenzhen, as well as 52% of the equity of Shenzhen Expressway, 49% of the equity of Shenzhen Airlines, and 10.55 million square meters of planned logistics park area. The company's recently launched equity incentive plan is expected to quickly restore profitability, with a dividend yield of more than 15% expected in 2024. At present, the return of value has begun, and Shenzhen International is a recommended defense + overseas dividend**.
Finally, for the cross-border e-commerce freight forwarding industry, Sinotrans and Huamao Logistics are recommended defense + overseas dividends**. At present, the air and sea freight cycle has bottomed out, and the EPS volatility risk of the two companies has converged, and it is expected that the cargo volume growth option will be 10-20% next year. At present, the dividend yield of the two companies in 2024 is around 4-5%, and the current allocation is cost-effective.
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