Profits more than double as home sales power MTR Corp

MTR Corporation announced on Thursday that its net profit for the first half of the year more than doubled, reaching HK$15.78 billion. This significant increase was driven by strong performance from its property development division, which saw profits jump by over 120 percent to HK$12.2 billion. Much of this growth was attributed to successful projects at Tai Wai Station and Southside Package 5 in Wong Chuk Hang.

The remaining profits from recurrent businesses rose by 1.3 percent to over HK$3.43 billion. Notably, the company experienced a fair value gain of HK$205 million from investment properties, marking a stark contrast from the HK$1.224 billion loss in the same period last year. Rail revenues, however, declined by 4.1 percent, amounting to approximately HK$26.23 billion, despite a rise in patronage from cross-boundary and high-speed services.

The board opted to pay an interim dividend of 42 Hong Kong cents per share, maintaining the same level as the previous year. MTR's CEO, Jeny Yeung, emphasized the company's commitment to transforming itself into a futuristic, AI and technology-driven organization for sustained long-term success. Despite facing external challenges such as global economic headwinds, shifting consumer patterns, uncertainties in retail and property markets, and increased competition, Yeung expressed confidence in continued mild increases in patronage during the second half of the year.

She also highlighted the potential benefits for advertising and property rental businesses as the retail and property markets stabilize. The company anticipates funding its new railway projects through HK$57.34 billion in bond sales this year.