J.P. Morgan Global Infrastructure: Valuation Dashboard - July Edition

Research evidence excerpt

J.P. Morgan Global Infrastructure: Valuation Dashboard - July Edition

among JR companies. (iv) Europe:

There is potential for Getlink’s traffic to benefit from the effect of a rising oil price on the

ferries, and the team expects Eiffage and Mundys’ stakes to sustain the stock’s premium

at present, but the company’s traffic has proven cyclical historically. The team is

conscious at present of the risk posed to valuation by movements in UK yields, but

expects no major changes to the status quo. (v) Asia: We are optimistic on Beijing-

Shanghai High-Speed Railway, underpinned by robust free cash flow and a strong

balance sheet that provides flexibility for strategic initiatives including potential asset

injections and enhanced shareholder returns via buybacks or dividend increases.

BSHSR’s extensive rail network connecting major economic hubs sits at the heart of

China’s ‘four vertical and four horizontal’ HSR corridors, while its 65% stake in Jingfu

Anhui HSR further strengthens the asset base with exposure to strategically significant

routes. The company’s ability to navigate demand fluctuations and regulatory changes,

while leveraging its network positioning, underpins its potential for continued market

leadership in China’s high-speed rail sector.

• Ports & Shipping. (i) Asia: Under Karen’s coverage, ICTSI remains a top pick given its

more defensive O&D operating model, which faces less competition and impacts from

lingering port congestion, while its large exposure to emerging markets (~81%) offers

growth optionality. For Atul Tiwari, the top pick is APSEZ. Adani Ports and Special

Economic Zone (APSEZ) is India’s largest private port operator, commanding a ~28%

domestic cargo market share and 46% container share, with unmatched scale across 15