MTR Corporation (00066) announced interim results. Net profit attributable to shareholders of HK$15.872 billion increased 105.9% year over year

According to the Zhitong Finance App, MTR Corporation (00066) announced results for the six months ended June 30, 2026. The group obtained revenue of HK$26.231 billion, a year-on-year decrease of 3.1%; net profit attributable to the company's shareholders was HK$15.872 billion, up 105.9% year on year; basic profit per share was HK$2.55, and an interim dividend of HK$0.42 per share was to be declared.

In the first half of 2026, there was a slight increase in recurring business profit attributable to shareholders of HK$3.434 billion, while the profit obtained in the same period last year was HK$3,391 billion, mainly due to increased contributions from mainland China and international businesses. However, depreciation of the Hong Kong business and rising annual non-fixed payments offset part of the increase. Property development profits during the period also increased to HK$12.233 billion, mainly from property development portfolios related to railway projects carried out earlier. As a result, profit from basic operations increased by 75.4% to HK$15.667 billion. After taking into account the fair value measurement income of the investment property (non-cash accounting items) of HK$205 million, the net profit attributable to the Company's shareholders increased to HK$15.872 billion, equivalent to a profit of HK$2.55 per share.

The MTR's network expansion plans in Hong Kong, as well as ongoing asset maintenance, upgrades and upgrades, all involve huge capital expenses. The MTR will continue to effectively manage related expenses by consolidating and increasing the MTR's recurring revenue streams, external financing, and adhering to the principles of prudent financial management.

Looking ahead to the second half of the year, based on recent trends, the MTR's passenger volume is expected to continue to increase slightly; with the gradual stabilization of the retail and property markets, the MTR's advertising and property leasing business is also expected to benefit. As the macroeconomic and geopolitical situation continues to fluctuate, the MTR will continue to closely monitor inflation and interest rates.

In terms of the property business, its performance and the overall performance of the property market will depend to a certain extent on local and global economic conditions and current interest rate trends. Depending on the construction progress and sales situation, the MTR is expected to record property development profits for the “South Bank of Hong Kong Island” Phase 6 and the Yau Tong Ventilation Building Project in the second half of this year, and will continue to account for the profits of the Tai Wai Station Project. Most of the profits from property development will be used for MTR asset renewal and management, as well as support for new railway projects. Property development projects usually take several years from the design stage to pre-sale, and the time for profits to be recorded depends on construction progress and sales conditions. The MTR invited tenders for the Tuen Mun Area 16 Station Phase II property development project in July 2026. The project is expected to be completed in 2033 or later. Depending on market conditions, we are planning to launch two other projects in the next 12 months or so. Together with the MTR currently tendering for the Tuen Mun Area 16 Station Phase II project, a total of about 8,000 units.