MTR (66) H1 2024 earnings summary

Executive summary

• Net profit attributable to shareholders rose 44.7% year-over-year to HK$6,044 million, driven by strong recovery in transport patronage and property development profit.

• Achieved strong financial performance in 1H2024, with significant growth in underlying business profit and property development profit year-over-year.

• Declared interim dividend of HK$0.42 per share, unchanged from the prior year.

• Continued expansion and enhancement of railway services, including new routes, technology upgrades, and international operations.

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

Financial highlights

• Total revenue from recurrent businesses rose 6.2% YoY to HK$29,271 million; Hong Kong revenue up 16.2%, while outside Hong Kong declined 5.0%.

• Underlying business profit surged 82.9% YoY to HK$5,764 million; recurrent business profit up 66.3% to HK$4,024 million.

• Property development profit (post-tax) increased 137.7% YoY to HK$1,740 million.

• Gain from fair value measurement of investment properties dropped 72.7% to HK$280 million.

• Basic EPS rose to HK$0.97, up 44.8% YoY.

Outlook and guidance

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

• Focus on enhancing railway services, asset renewal, and advancing new projects in Hong Kong.

• Exploring further development opportunities in Mainland China, Greater Bay Area, and overseas markets.

• Expect to book further property development profit in 2H 2024 from several projects, including La Montagne and ONMANTIN.

• Possible tendering of Tung Chung East Station Package 1 within 12 months, subject to market conditions.