CICC raises Sinotrans Limited's target price to HKD 4.75 and maintains an "outperform" rating.

China International Capital Corporation Limited released a research report stating that Sinotrans Limited (00598) announced that it has signed a share purchase agreement with the buyer, MIC Industrial Investments 4 RSC LTD, to sell 25% of the equity of Road King International for US$470 million. After the completion of the transaction, Sinotrans Limited will retain 20% of Road King International's equity. The company maintains a "outperform" rating and has raised its target price by 10.5% to HK$4.75. The bank pointed out that, considering the expected investment returns, the decrease in income after selling Road King International's equity, and the tax impact adjustments, the estimated effect of this transaction is expected to increase Sinotrans Limited's net profit by RMB 1.35 billion, equivalent to a 38% growth in profit by 2025. Considering that the asset sale is still ongoing, the bank maintains its profit forecast for 2025 and 2026 unchanged, estimating profits of RMB 3.56 billion and RMB 3.7 billion for 2025 and 2026 respectively, with growth rates of -9.2% and 4%.