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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 2020 HKDUSD
Revenue42,541M5,484.91M
Gross Profit95M12.24M
Operating income-422M-54.40M
Income before tax-4,125M-531.84M
Net income-4,809M-620.03M
EBITDA4,943M637.31M
Diluted EPS-0.78-0.10
Dividends Per Share1.230.15
Total Assets290,574M37,474.80M
Total liabilities113,593M14,649.88M
Total equity176,788M22,800.02M
Operating cash flow288M37.13M
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 45,189M 55,440M 53,930M 54,504M 42,541M
Gross Profit 14,524M 16,388M 14,206M 10,365M 95M
Operating income 11,476M 13,516M 11,578M 7,506M -422M
Income before tax 11,906M 19,709M 17,823M 13,726M -4,125M
Net income 10,254M 16,829M 16,008M 11,932M -4,809M
EBITDA 15,603M 18,371M 16,563M 12,743M 4,943M
Diluted EPS 1.74 2.82 2.63 1.94 -0.78
Dividends Per Share 1.07 1.12 1.20 1.23 1.23
Total Assets 257,340M 263,768M 274,687M 289,214M 290,574M
Total liabilities 107,261M 97,342M 94,068M 102,416M 113,593M
Total equity 149,461M 166,304M 180,447M 186,606M 176,788M
Operating cash flow 16,824M 19,183M 10,273M 16,359M 288M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 5,821.48M 7,114.24M 6,880.98M 6,956.30M 5,484.91M
Gross Profit 1,871.05M 2,102.96M 1,812.55M 1,322.87M 12.24M
Operating income 1,478.39M 1,734.41M 1,477.24M 957.98M -54.40M
Income before tax 1,533.79M 2,529.12M 2,274.05M 1,751.83M -531.84M
Net income 1,320.97M 2,159.55M 2,042.47M 1,522.87M -620.03M
EBITDA 2,010.05M 2,357.42M 2,113.28M 1,626.37M 637.31M
Diluted EPS 0.22 0.36 0.33 0.24 -0.10
Dividends Per Share 0.13 0.14 0.15 0.15 0.15
Total Assets 33,191.66M 33,741.57M 35,084.26M 37,117.73M 37,474.80M
Total liabilities 13,834.50M 12,452.12M 12,014.79M 13,144.07M 14,649.88M
Total equity 19,277.45M 21,273.84M 23,047.50M 23,949.02M 22,800.02M
Operating cash flow 2,167.35M 2,461.62M 1,310.74M 2,087.88M 37.13M

Valuation Measures

Dec 2020
PER--
ROA-1.65%
ROE-2.64%
Operating margin-0.99%
Profit margin-11.30%

Key executives

  • Chief Executive Officer & Director: Chak-pui Kam
  • Operations Director & Executive Director: Kar-yun Lee
  • Executive Director & Finance Director: Leung Wah Hui
  • Head-Information Technology: Yiu-tat Suen
  • Executive Director & Commercial Director: Mei-chun Yeung

Shareholders

  • Government of Hong Kong Special Administrative Region (74.8%)
  • BlackRock Fund Advisors (0.7%)
  • The Vanguard Group, Inc. (0.6%)
  • Norges Bank Investment Management (0.3%)
  • Geode Capital Management LLC (0.2%)
  • State Street Global Advisors Asia Ltd. (0.2%)
  • APG Asset Management NV (0.2%)
  • BNP Paribas Asset Management France SAS (0.1%)
  • BlackRock Advisors (UK) Ltd. (0.1%)
  • Vontobel 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 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
  • 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 26 Oct, 2021

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