Hopewell and highway infrastructure rose 1% Citigroup dividend

Hopewell and highway infrastructure was slightly built this morning, with shares rising 1.17% per cent to HK $4.33 and 970,000 shares a half.　　Citi issued a report saying that the initial rating given to the unit, with a target price of HK $4.8, amounted to 12.2 times and 12.9 times times the forecast earnings for the 2009-2010 fiscal year, at a premium of 11% per cent of its market price. Citigroup pointed out that the combined and road infrastructure in the 2009 fiscal year core net profit will increase by 40%, mainly thanks to the new Tangxia-Dongguan section of the road after the overhaul of the flow of traffic recovery. At the same time, the dividend yield of the unit will be attractive after management proposes to introduce more than 100% per cent of the interest rate on the core net profit from fiscal year 2009, with the original payout target of 75% per cent, excluding the special dividend and the dividend yield of 2009-2010 for fiscal year 9.1% is the highest in the industry.　　Citi also expects that the highway will not be diverted to its highways as soon as it is completed by the end of 2011. In comparison, Citigroup estimates that the combined and road infrastructure valuations are equivalent to 11 times and 11.6 times times of the 2009-2010 fiscal year forecast, below the historical average (15.7 times and 13.3 times times) of the same kind of Nanjing-Shanghai High-speed (00177-HK) and Zhejiang-Hangzhou-Ningbo (00576-HK).