Shenzhen Expressway 0548

[winston]

Not vested.

BROKER CALL - China's Shenzhen Expressway cut to 'neutral' - Goldman Sachs

BEIJING (XFN-ASIA) - Goldman Sachs said it has downgraded its recommendation on Hong Kong-listed Shenzhen Expressway to "neutral" from "buy" as the toll road operator's share price has slumped 47 pct since the start of the year.

"We believe the disappointing stock performance was caused by worse-than-expected operational headwinds in 2008, and we now see significant downside risk to 2009 earnings growth as well," Goldman Sachs said in a note.

Goldman Sachs added that it has cut its target price on the company by 27 pct to 5.1 hkd.

Shenzhen Expressway's shares at 11.44 am were down 0.17 hkd or 3.62 pct at 4.53 hkd.

Goldman Sachs also said that it has lowered its 2008-09 earnings per share (EPS) estimates to 0.30 yuan and 0.33 yuan respectively.