MTR (66) investor relations material

Executive summary

• Net profit attributable to shareholders surged 105.9% year-over-year to HK$15.9 billion, driven by a significant increase in property development profit and steady recurrent business performance.

• Recurrent business profit rose 1.3% to HK$3.4 billion, with steady growth in Hong Kong transport operations and higher contributions from Chinese Mainland and international businesses.

• Interim dividend maintained at HK$0.42 per share.

• Seven major railway projects are progressing, supporting Hong Kong’s development and future sustainable growth.

• Total revenue declined 4.1% to HK$26.2 billion, mainly due to the end of certain international service contracts, partially offset by higher Hong Kong transport patronage.

Financial highlights

• Profit from property development rose 120.7% to HK$12.2 billion, mainly from Tai Wai Station and THE SOUTHSIDE Package 5.

• Underlying business profit was HK$15.7 billion, with EPS at HK$2.55, up 105.6% year-over-year.

• EBIT loss of HK$141 million in Hong Kong transport operations, mainly due to higher maintenance expenses, no fare increase, and increased depreciation.

• EBITDA margin improved to 34.1%; net debt-to-equity ratio stood at 21.7%, and interest cover rose to 34.8 times.

• Cash and deposits increased to HK$114 billion, reflecting strong financing activities.

Outlook and guidance

• Preparing for a construction peak period with multiple railway projects underway, including Northern Link, Tuen Mun South Extension, and Tung Chung Line Extension.

• Continued booking of property development profits expected in phases this year, supporting railway construction and operations.

• Two new property projects expected to be tendered in the next 12 months, with a total potential yield of about 8,000 units.

• Emphasis on digital transformation, AI, and technology to enhance competitiveness and service quality.

• Ongoing forward-looking financial planning to address substantial investment needs and market uncertainties.