ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Transportation

MTR Corp. Ltd.

Company Background

Hong Kong railway company MTR carries an average of more than 5 million passengers every weekday. It operates nine main commuter lines in the city, and the Airport Express high-speed rail link that connects the city and Hong Kong International Airport. The company's automatic fare collection system, known as the Octopus, was the first smartcard system for public transport in the world. Most Hong Kong residents own Octupus cards and use them for trains, buses, trams, shopping and restaurants.

The company was established in 1975 as Mass Transit Railway. It was fully owned by the Hong Kong government at that time. In 2000, the government sold a 23% stake in the company to private investors in an IPO, and re-established itself as MTR. In 2007, MTR was merged with the Kowloon-Canton Railway, the other government-owned railway company in Hong Kong. Since the merger, the company has expanded its businesses in and outside of the region to diversify revenue sources. It now operates subway lines in Beijing, Shenzhen and Hangzhou, and train systems in the U.K. and Australia. Its consultancy business has widened to cover Asia, Australia, Europe and the Middle East.

MTR also engages in property development. It has formed joint ventures with property developers and created commercial and residential buildings near its railway systems. MTR has completed developments with a total area of more than 2 million sq. meters of commercial space and around 94,000 housing units, including International Commerce Center, one of the tallest buildings in Hong Kong.

Business Summary

MTR Corp. Ltd. engages in the management and provision of railway transit services. It operates through the following segments: Hong Kong Transport Operations; Hong Kong Station Commercial Businesses; Hong Kong Property Rental and Management Businesses; Hong Kong Property Development; Mainland of China and International Railway, Property Rental and Management Businesses; Mainland of China Property Development; and Other Businesses. The Hong Kong Transport Operations segment offers urban mass transit railway system, light rail and bus feeder, and intercity railway transport. The Hong Kong Station Commercial Businesses segment pertains to car parking spaces, telecommunications services, advertising promotions, and retail stores provided in railway stations. The Hong Kong Property Rental and Management Businesses segment includes estate management services in offices, shops, and car parks. The Hong Kong Property Development segment builds and markets locations near the railway stations. The Mainland of China and International Railway, Property Rental and Management Businesses segment engineers, operates, and maintains mass transit railway systems. The Mainland of China Property Development segment refers to the real estate property development activities. The Other Businesses segment covers the project management services and cable car operations. The company was founded in 1975 and is headquartered in Hong Kong.

Financial Highlights

Dec 2018 HKDUSD
Revenue53,930M6,880.98M
Gross Profit14,206M1,812.55M
Operating income11,578M1,477.24M
Income before tax17,823M2,274.05M
Net income16,008M2,042.47M
EBITDA16,563M2,113.28M
Diluted EPS2.630.33
Dividends Per Share1.200.15
Total Assets274,687M35,084.26M
Total liabilities94,068M12,014.79M
Total equity180,447M23,047.50M
Operating cash flow10,273M1,310.74M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 40,156M 41,701M 45,189M 55,440M 53,930M
Gross Profit 13,346M 13,503M 14,524M 16,388M 14,206M
Operating income 10,503M 10,687M 11,476M 13,516M 11,578M
Income before tax 18,172M 15,014M 11,906M 19,709M 17,823M
Net income 15,606M 12,994M 10,254M 16,829M 16,008M
EBITDA 13,988M 14,536M 15,603M 18,371M 16,563M
Diluted EPS 2.68 2.22 1.74 2.82 2.63
Dividends Per Share 1.05 1.06 1.07 1.12 1.20
Total Assets 227,152M 241,103M 257,340M 263,768M 274,687M
Total liabilities 62,905M 70,189M 107,261M 97,342M 94,068M
Total equity 163,325M 170,055M 149,461M 166,304M 180,447M
Operating cash flow 15,485M 14,375M 16,824M 19,183M 10,273M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 5,178.29M 5,378.98M 5,821.48M 7,114.24M 6,880.98M
Gross Profit 1,721.02M 1,741.74M 1,871.05M 2,102.96M 1,812.55M
Operating income 1,354.40M 1,378.51M 1,478.39M 1,734.41M 1,477.24M
Income before tax 2,343.35M 1,936.64M 1,533.79M 2,529.12M 2,274.05M
Net income 2,012.46M 1,676.08M 1,320.97M 2,159.55M 2,042.47M
EBITDA 1,803.81M 1,874.99M 2,010.05M 2,357.42M 2,113.28M
Diluted EPS 0.34 0.28 0.22 0.36 0.33
Dividends Per Share 0.13 0.13 0.13 0.14 0.15
Total Assets 29,291.60M 31,109.46M 33,191.66M 33,741.57M 35,084.26M
Total liabilities 8,111.69M 9,056.46M 13,834.50M 12,452.12M 12,014.79M
Total equity 21,061.01M 21,942.15M 19,277.45M 21,273.84M 23,047.50M
Operating cash flow 1,996.85M 1,854.22M 2,167.35M 2,461.62M 1,310.74M

Valuation Measures

Dec 2018
PER15.58
ROA5.94%
ROE9.23%
Operating margin21.46%
Profit margin29.68%

Key executives

  • Chief Executive Officer & Director: Chak-pui Kam
  • Executive Director & Operations Director: Tin Shing Lau
  • Finance Director: Leung Wah Hui
  • Engineering Director: Peter Ronald Ewen
  • Head-Information Technology: Yiu-tat Suen

Shareholders

  • Government of Hong Kong Special Administrative Region (73.3%)
  • BlackRock Fund Advisors (0.8%)
  • The Vanguard Group, Inc. (0.6%)
  • State Street Global Advisors Asia Ltd. (0.2%)
  • Norges Bank Investment Management (0.2%)
  • GQG Partners LLC (0.1%)
  • Geode Capital Management LLC (0.1%)
  • Hang Seng Investment Management Ltd. (0.1%)
  • BlackRock Advisors (UK) Ltd. (0.1%)
  • TD Asset Management, Inc. (0.1%)

Contact Details

  • Website:http://mtr.com
  • Address: MTR Headquarters Building, Telford Plaza, Hong Kong, Hong Kong
  • Phone: +852.2993.2111

Related Companies

  • MTR (Beijing) Commercial Facilities Management Co., Ltd.
  • MTR Ho Tung Lau Depot
  • MTR (Shenzhen) Co., Ltd .
  • MTR Corp. (UK) Ltd.
  • Mtr Property (Tianjin) No 1 Co. Ltd.
  • TraxComm Ltd.
  • Northwest Rapid Transit Consortium
  • Alstom Hong Kong Ltd.
  • MTR Corp. Ltd. Retirement Scheme
  • MTR Corp. Ltd. Provident Fund Scheme
  • Metro Trains Melbourne Pty Ltd.
  • Octopus Holdings Ltd.
  • MTR Corp. (CI) Ltd.
  • Kowloon-Canton Railway Corp.

Competitors

  • Transport International Holdings Limited
  • Shanghai Shentong Metro Co., Ltd Class A
  • Stagecoach Group plc
Last Updated on 13 Dec, 2019

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media