Daqin Railway (SHSE:601006) is one of the largest eastbound coal transporters in Northern China, serving a number of major coal companies while also running a passenger transportation business. The company possesses strong fundamentals with growth potential as a beneficiary of railway reforms with possible tariff hikes that will likely improve the company’s profitability. The average dividend payout ratio of Daqin Railway in the past five years has been over 50%, contributing to its relatively high dividend yield.
From Value Partners (Trades, Portfolio)’ Classic Fund Q3 2014 Commentary.
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