MTR (66) H1 2025 earnings summary

Executive summary

• Net profit attributable to shareholders rose 27.5% year-over-year to HK$7,709 million, driven by a 218.5% surge in property development profit despite a 15.7% decline in recurrent business profit due to higher costs and weaker retail conditions.

• Total revenue for the first half of 2025 was HK$27.4 billion, down 6.5% year-over-year, mainly due to lower contributions from Mainland China and international subsidiaries.

• Interim ordinary dividend of HK$0.42 per share declared, unchanged from the prior year.

• Major capital works and network expansion projects advanced, including the signing of the Northern Link (Part 1) Project Agreement.

• CEO transition announced, with Jeny Yeung to succeed Jacob Kam as CEO from January 2026.

Financial highlights

• Property development profit after tax surged 218.5% year-over-year to HK$5,542 million, mainly from Ho Man Tin and THE SOUTHSIDE projects.

• Recurrent business profit attributable to shareholders fell 15.7% year-over-year to HK$3,391 million, mainly due to higher operating costs in Hong Kong transport operations.

• Underlying business profit increased 55.0% year-over-year to HK$8,933 million.

• Loss from fair value measurement of investment properties was HK$1,224 million, compared to a gain of HK$280 million last year.

• Total assets increased 9.6% to HK$402.6 billion; net assets rose 13.5% to HK$211.2 billion.

Outlook and guidance

• Focus on expanding the Hong Kong rail network, with major projects like the Northern Link, Tung Chung Line Extension, and Oyster Bay Station underway.

• Property development profit expected from LOHAS Park Package 12 and continued profit from THE SOUTHSIDE Package 5 in the second half.

• Prudent cost control and robust financial management will continue, with capital expenditure for 2025–2027 estimated at HK$90.8 billion.

• Potential tenders for Tung Chung East Station Package 2 and Tuen Mun A16 Station Package 1 in the next 12 months, subject to market conditions.

• Ongoing risks from macroeconomic uncertainties, changing travel patterns, and slow retail recovery.