MTR (66) H2 2023 earnings summary

Executive summary

• Revenue rose 19.2% to HK$56,982 million as cross-boundary and High Speed Rail services, Duty Free operations and domestic patronage recovered.

• Net profit attributable to shareholders fell 20.8% to HK$7,784 million; lower property development profit outweighed stronger recurrent business results.

Financial highlights

• Recurrent business profit was HK$4,281 million versus HK$157 million; excluding HK$1,022 million of 2023 special loss provisions, it was HK$5,303 million versus HK$1,119 million.

• Property development profit was HK$2,083 million, down 80.1%; underlying business profit fell 40.2% to HK$6,364 million.

• Profit before interest, finance charges and tax was HK$10,802 million versus HK$12,731 million; profit for the year was HK$8,088 million versus HK$10,141 million.

• Basic EPS was HK$1.26 versus HK$1.59; underlying-business EPS was HK$1.03 versus HK$1.72.

Outlook and guidance

• Subject to construction and sales progress, 2024 property profit is expected from La Montagne, THE SOUTHSIDE Package 5, Ho Man Tin Station Package 1 and IN ONE; Villa Garda profit is expected to continue.

• Tung Chung East Station Package 1 is expected to be re-tendered in the next 12 months or so; Oyster Bay advance works are underway, with first resident intake targeted for 2030.

• Continue advancing railway projects under RDS 2014 and supporting initiatives in the Hong Kong transport infrastructure blueprint; pursue commercially viable opportunities in Mainland China and overseas.

• Prudent cost control, smart technologies and operational innovation are priorities amid geopolitical uncertainty, inflation and high interest rates.