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 had more than doubled to HK$15.78 billion, compared to HK$7.29 billion a year earlier. This surge was driven by strong gains from property development, which increased by over 120 percent to HK$12.2 billion. Much of this profit from real estate development is earmarked for new railway projects and asset replacements.

Recurrent business earnings rose by 1.3 percent to over HK$3.43 billion. The fair value gain from investment properties amounted to HK$205 million, marking a significant improvement from a HK$1.224 billion loss in the same period last year. However, rail revenues declined by 4.1 percent to approximately HK$26.23 billion, despite increased patronage from cross-boundary and high-speed services.

The board decided to pay an interim dividend of 42 Hong Kong cents per share, unchanged from the previous year. MTR's CEO, Jeny Yeung, highlighted the company's commitment to transforming into an AI and technology-empowered organization to secure long-term success. The company is set to embark on one of the largest railway expansions in its history, while also navigating external challenges such as global economic headwinds, changing consumer patterns, retail and property market uncertainties, and heightened competition.

For the second half of the year, MTR expects mild increases in patronage and potential benefits from stabilizing retail and property markets in its advertising and property rental businesses. The company anticipates continued discussions with the government to finalize the Northern Link (Part 2) project agreement and presses ahead with the Northern Metropolis main transport development, as well as commencing designs for the Pak Shek Kok Station project. To finance these projects, MTR has raised HK$57.34 billion through bond sales this year.