MTR profit more than doubles to $15.9b in H1 on property gains

Recurrent business profit grew just 1.3%.

MTR Corporation’s net profit more than doubled to $15.87b in the first half (H1), up 105.9% year on year (YoY) from $7.71b, as property development gains offset flat rail and commercial operations performance.

The rail company’s property development profit rose 120.7% YoY to $12.23b, driven by the Tai Wai Station and THE SOUTHSIDE “Package 5” projects.

“Much of the profit would contribute to our asset replacements and management as well as new railway projects,” it said.

The interim ordinary dividend stood at $0.42 per share.

Profit from recurrent businesses increased 1.3% YoY to $3.43b, whilst total revenue fell 4.1% to $26.23b.

Hong Kong transport operations accounted for nearly half of total revenue at $11.85b, but recorded a $141m loss contribution.

MTR’s station commercial business remained broadly flat at $2.61b, compared with $2.62b a year earlier.

Revenue from Chinese Mainland and international railway, property rental, and management subsidiaries fell to $8.84b.

“Upon completion of the seven new projects underway, together with the South Island Line (West) and Pak Shek Kok Station projects currently under planning and design, we expect the number of stations to increase by 20,” the rail company said.

It aims to complete the Northern Link by 2034 following a project agreement with the government, whilst Kwu Tung Station on the East Rail Line is on track for completion in 2027.

MTR raised $58b through bond sales in H1.

The rail company added that it has eight residential property projects under construction, which are expected to contribute about 9,300 units to the market, including units from completed developments.