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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 2019 HKDUSD
Revenue54,504M6,956.30M
Gross Profit10,365M1,322.87M
Operating income7,506M957.98M
Income before tax13,726M1,751.83M
Net income11,932M1,522.87M
EBITDA12,743M1,626.37M
Diluted EPS1.940.24
Dividends Per Share1.230.15
Total Assets289,214M37,117.73M
Total liabilities102,416M13,144.07M
Total equity186,606M23,949.02M
Operating cash flow16,359M2,087.88M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 41,701M 45,189M 55,440M 53,930M 54,504M
Gross Profit 13,503M 14,524M 16,388M 14,206M 10,365M
Operating income 10,687M 11,476M 13,516M 11,578M 7,506M
Income before tax 15,014M 11,906M 19,709M 17,823M 13,726M
Net income 12,994M 10,254M 16,829M 16,008M 11,932M
EBITDA 14,536M 15,603M 18,371M 16,563M 12,743M
Diluted EPS 2.22 1.74 2.82 2.63 1.94
Dividends Per Share 1.06 1.07 1.12 1.20 1.23
Total Assets 241,103M 257,340M 263,768M 274,687M 289,214M
Total liabilities 70,189M 107,261M 97,342M 94,068M 102,416M
Total equity 170,055M 149,461M 166,304M 180,447M 186,606M
Operating cash flow 14,375M 16,824M 19,183M 10,273M 16,359M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 5,378.98M 5,821.48M 7,114.24M 6,880.98M 6,956.30M
Gross Profit 1,741.74M 1,871.05M 2,102.96M 1,812.55M 1,322.87M
Operating income 1,378.51M 1,478.39M 1,734.41M 1,477.24M 957.98M
Income before tax 1,936.64M 1,533.79M 2,529.12M 2,274.05M 1,751.83M
Net income 1,676.08M 1,320.97M 2,159.55M 2,042.47M 1,522.87M
EBITDA 1,874.99M 2,010.05M 2,357.42M 2,113.28M 1,626.37M
Diluted EPS 0.28 0.22 0.36 0.33 0.24
Dividends Per Share 0.13 0.13 0.14 0.15 0.15
Total Assets 31,109.46M 33,191.66M 33,741.57M 35,084.26M 37,117.73M
Total liabilities 9,056.46M 13,834.50M 12,452.12M 12,014.79M 13,144.07M
Total equity 21,942.15M 19,277.45M 21,273.84M 23,047.50M 23,949.02M
Operating cash flow 1,854.22M 2,167.35M 2,461.62M 1,310.74M 2,087.88M

Valuation Measures

Dec 2019
PER23.70
ROA4.23%
ROE6.50%
Operating margin13.77%
Profit margin21.89%

Key executives

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

Shareholders

  • Government of Hong Kong Special Administrative Region (75.2%)
  • BlackRock Fund Advisors (0.7%)
  • The Vanguard Group, Inc. (0.7%)
  • Norges Bank Investment Management (0.3%)
  • State Street Global Advisors Asia Ltd. (0.2%)
  • Geode Capital Management LLC (0.2%)
  • BlackRock Advisors (UK) Ltd. (0.1%)
  • Hang Seng Investment Management Ltd. (0.1%)
  • TD Asset Management, Inc. (0.1%)
  • Dimensional Fund Advisors LP (0.0%)

Contact Details

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

Related Companies

  • MTR Operacoes Ferroviarias (Macau) Sociedade Unipessoal Lda.
  • MTR Property Development (Shenzhen) Co., Ltd.
  • MTR Corporation (Shenzhen) Ltd.
  • MTR Tunnelbanan AB
  • MTR Pendeltagen AB
  • MTR Express (Sweden) AB
  • MTR Consultadoria (Macau) Sociedade Unipessoal Lda.
  • Metro Trains Sydney Pty Ltd.
  • MTR Telecommunication Co., Ltd.
  • MTR (Beijing) Commercial Facilities Management Co., Ltd.
  • MTR Academy (HK) Co., Ltd.
  • Pierhead Garden Management Co., Ltd.
  • MTR Ho Tung Lau Depot
  • MTR (Shenzhen) Co., Ltd .
  • MTR Corporation (UK) Ltd.
  • Mtr Property (Tianjin) No 1 Co. Ltd.
  • Ngong Ping 360 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 Corporation (C.I.) Ltd.
  • Kowloon-Canton Railway Corp.

Competitors

  • Transport International Holdings Limited
  • Stagecoach Group plc
Last Updated on 7 Aug, 2020

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