HK Stock Market Move | YUEXIUTRANSPORT(01052) rose nearly 6% in early trading, intending to acquire 85% equity of Shandong Qinbin Expressway. This is expected to drive the company's EBITDA growth.

YUEXIUTRANSPORT (01052) rose nearly 6% in early trading, up 3.67% as of the time of writing, at 4.52 Hong Kong dollars, with a turnover of 1050.53 million Hong Kong dollars. On the news front, YUEXIUTRANSPORT previously announced the acquisition of 85% equity interest in Shandong Qinbin Expressway Construction, with a total transaction price of 1.1535 billion RMB. Qinbin Expressway is the fastest coastal expressway in the Bohai Sea region, and the target highway is part of its operations in Shandong province, and is an important part of the national expressway network Jingha Expressway (G1) connecting line. Fitch Ratings believes that this acquisition will drive revenue and EBITDA growth for YueXiu Transportation. The transaction is expected to be completed by the end of 2025 or early 2026, at which time the revenue of Shandong Qinbin Expressway will be fully integrated into YueXiu Transportation. Fitch Ratings believes that this acquisition will support the growth of YueXiu Transportation's EBITDA, extend the average concession operating period of its assets by about 1 year to 12 years, and offset the impact of the expiration of the Jinxi Expressway sale and the Guangzhou North Ring Expressway concession period in 2024.