MTR (66) H1 2024 earnings summary

Executive summary

• Net profit attributable to shareholders rose 44.7% year-over-year to HK$6.0 billion, driven by strong recovery in transport patronage and property development profit.

• Total revenue increased 6.2% to HK$29.3 billion, with notable gains in Hong Kong transport, station commercial, and property rental businesses.

• Interim dividend of HK$0.42 per share declared, unchanged from 2023.

• Major operational milestones included the launch of HSR overnight sleeper trains and the full-scale opening of THE SOUTHSIDE mall.

• Continued network expansion and major construction projects, including Tung Chung Line Extension, Tuen Mun South Extension, Kwu Tung Station, and Oyster Bay Station.

Financial highlights

• Recurrent business profit surged 66.3% to HK$4.0 billion, reflecting robust recovery in Hong Kong transport and improved international results.

• Property development profit (post-tax) more than doubled to HK$1.7 billion, mainly from SOUTHLAND, La Marina, and Villa Garda.

• Gain from fair value measurement of investment properties dropped 72.7% to HK$0.28 billion due to lower revaluation gains.

• Net assets at HK$179.0 billion, up 0.1% from end-2023; total assets at HK$361.0 billion, up 4.2%.

• Basic EPS at HK$0.97, up 44.8%.

Outlook and guidance

• Cautious optimism for continued recovery, but notes risks from global economic volatility, high interest rates, and evolving travel/consumption patterns.

• Plans to tender Tung Chung East Station Package 1 within 12 months and target 2030 for first Oyster Bay residents.

• Anticipates further property development profit bookings in H2 2024, subject to construction and sales progress.

• Progressing new railway projects under RDS 2014 and supporting government infrastructure initiatives.

• Internationally, preparing for Sydney Metro City & Southwest opening and Shenzhen Metro Line 13 Phase 1 launch in 2024.