C-REIT spinoff the start of a virtuous asset recycling cycle
- RMB960m pretax gain on disposal from spin-off of Hanxiao Expressway into a C-REIT in China not priced in
- Acquisition of Lanwei E’way up next; continued asset recycling could raise ROE on a sustained basis
- Attractive FY21F valuations of 0.6x P/B against 14% ROE and FY21F yield of 11.4% on just 50% payout
- Maintain BUY on higher TP of HK$8.30