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 2022	HKD	USD
Revenue	47,812M	6,105.87M
Gross Profit	2,468M	315.17M
Operating income	1,819M	232.29M
Income before tax	10,654M	1,360.57M
Net income	9,827M	1,254.96M
EBITDA	7,588M	969.03M
Diluted EPS	1.58	0.20
Dividends Per Share	1.31	0.16
Total Assets	327,081M	41,906.86M
Total liabilities	147,169M	18,855.85M
Total equity	179,286M	22,970.80M
Operating cash flow	--	--
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	53,930M	54,504M	42,541M	47,202M	47,812M
Gross Profit	14,206M	10,365M	95M	3,030M	2,468M
Operating income	11,578M	7,506M	-422M	2,458M	1,819M
Income before tax	17,823M	13,726M	-4,125M	10,972M	10,654M
Net income	16,008M	11,932M	-4,809M	9,552M	9,827M
EBITDA	16,563M	12,743M	4,943M	7,888M	7,588M
Diluted EPS	2.63	1.94	-0.78	1.54	1.58
Dividends Per Share	1.20	1.23	1.23	1.27	1.31
Total Assets	274,687M	289,214M	290,574M	292,082M	327,081M
Total liabilities	94,068M	102,416M	113,593M	112,045M	147,169M
Total equity	180,447M	186,606M	176,788M	179,714M	179,286M
Operating cash flow	10,273M	16,359M	288M	7,099M	--

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	6,880.98M	6,956.30M	5,484.91M	6,072.68M	6,105.87M
Gross Profit	1,812.55M	1,322.87M	12.24M	389.81M	315.17M
Operating income	1,477.24M	957.98M	-54.40M	316.22M	232.29M
Income before tax	2,274.05M	1,751.83M	-531.84M	1,411.58M	1,360.57M
Net income	2,042.47M	1,522.87M	-620.03M	1,228.89M	1,254.96M
EBITDA	2,113.28M	1,626.37M	637.31M	1,014.81M	969.03M
Diluted EPS	0.33	0.24	-0.10	0.19	0.20
Dividends Per Share	0.15	0.15	0.15	0.16	0.16
Total Assets	35,084.26M	37,117.73M	37,474.80M	37,464.18M	41,906.86M
Total liabilities	12,014.79M	13,144.07M	14,649.88M	14,371.56M	18,855.85M
Total equity	23,047.50M	23,949.02M	22,800.02M	23,051.19M	22,970.80M
Operating cash flow	1,310.74M	2,087.88M	37.13M	913.30M	--

Valuation Measures

Dec 2022
PER	26.05
ROA	3.17%
ROE	5.47%
Operating margin	3.80%
Profit margin	20.55%

Key executives

Chief Executive Officer & Executive Director: Chak Pui Kam
Operations Director: Kar Yun Lee
Finance Director: Leung Wah Hui
Chief Engineer: Stephen Hamill
Head-Technical: Koon Sang Wong

Shareholders

Government of Hong Kong Special Administrative Region (74.7%)
BlackRock Fund Advisors (0.7%)
The Vanguard Group, Inc. (0.6%)
Norges Bank Investment Management (0.3%)
State Street Global Advisors Asia Ltd. (0.3%)
Geode Capital Management LLC (0.2%)
BlackRock Advisors (UK) Ltd. (0.2%)
BNP Paribas Asset Management France SAS (0.2%)
APG Asset Management NV (0.1%)
BlackRock Investment Management (UK) Ltd. (0.1%)

Contact Details

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

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Competitors

Transport International Holdings Limited
Stagecoach Group plc
Value Exchange International, Inc.

Last Updated on 24 Mar, 2023