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Transportation

MTR Corp. Ltd.

  • 43.50 HKD
  • +0.10
  • +0.23%
  • Hong Kong
    Apr 20, 2018
  • Ticker
    HKG(66)
  • Prev. close
    43.40
  • Market cap (HKD)
    260,765M
  • Market cap (USD)
    33,235.30M
  • Shares
    6,008.40M

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 builds and owns real estate properties. The Other Businesses segment pertains to project management services and cable car operations. The company was founded in 1975 and is headquartered in Hong Kong.

Financial Highlights

Dec 2017 HKDUSD
Revenue55,440M7,114.24M
Gross Profit16,388M2,102.96M
Operating income13,516M1,734.41M
Income before tax19,709M2,529.12M
Net income16,829M2,159.55M
EBITDA18,371M2,357.42M
Diluted EPS2.820.36
Dividends Per Share1.120.14
Total Assets263,768M33,741.57M
Total liabilities97,342M12,452.12M
Total equity166,304M21,273.84M
Operating cash flow19,183M2,461.62M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 38,707M 40,156M 41,701M 45,189M 55,440M
Gross Profit 12,275M 13,346M 13,503M 14,524M 16,388M
Operating income 9,817M 10,503M 10,687M 11,476M 13,516M
Income before tax 14,869M 18,172M 15,014M 11,906M 19,709M
Net income 13,025M 15,606M 12,994M 10,254M 16,829M
EBITDA 13,189M 13,988M 14,536M 15,603M 18,371M
Diluted EPS 2.24 2.68 2.22 1.74 2.82
Dividends Per Share 0.92 1.05 1.06 1.07 1.12
Total Assets 215,823M 227,152M 241,103M 257,340M 263,768M
Total liabilities 63,121M 62,905M 70,189M 107,261M 97,342M
Total equity 152,557M 163,325M 170,055M 149,461M 166,304M
Operating cash flow 14,209M 15,485M 14,375M 16,824M 19,183M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 4,990.17M 5,178.29M 5,378.98M 5,821.48M 7,114.24M
Gross Profit 1,582.51M 1,721.02M 1,741.74M 1,871.05M 2,102.96M
Operating income 1,265.62M 1,354.40M 1,378.51M 1,478.39M 1,734.41M
Income before tax 1,916.93M 2,343.35M 1,936.64M 1,533.79M 2,529.12M
Net income 1,679.20M 2,012.46M 1,676.08M 1,320.97M 2,159.55M
EBITDA 1,700.34M 1,803.81M 1,874.99M 2,010.05M 2,357.42M
Diluted EPS 0.28 0.34 0.28 0.22 0.36
Dividends Per Share 0.11 0.13 0.13 0.13 0.14
Total Assets 27,834.66M 29,291.60M 31,109.46M 33,191.66M 33,741.57M
Total liabilities 8,140.70M 8,111.69M 9,056.46M 13,834.50M 12,452.12M
Total equity 19,675.25M 21,061.01M 21,942.15M 19,277.45M 21,273.84M
Operating cash flow 1,831.84M 1,996.85M 1,854.22M 2,167.35M 2,461.62M

Valuation Measures

Dec 2017
PER16.18
ROA6.45%
ROE10.65%
Operating margin24.37%
Profit margin30.35%

Key executives

  • Chief Executive Officer & Executive Director: Kwok Kuen Leong
  • Operations Director: Tin Shing Lau
  • Finance Director: Leung Wah Hui
  • Head-Information Technology: Yiu-tat Suen
  • Managing Director-Operations & Mainland Business: Chak-pui Kam

Shareholders

  • Special Administrative Region of Hong Kong (73.8%)
  • BlackRock Fund Advisors (0.7%)
  • The Vanguard Group, Inc. (0.5%)
  • State Street Global Advisors Asia Ltd. (0.3%)
  • Norges Bank Investment Management (0.2%)
  • Hang Seng Investment Management Ltd. (0.1%)
  • TD Asset Management, Inc. (0.1%)
  • APG Asset Management NV (0.1%)
  • Aberdeen Asset Managers Ltd. (0.1%)
  • BlackRock Advisors (UK) Ltd. (0.1%)

Contact Details

  • Website:http://www.mtr.com.hk
  • Address: MTR Headquarters Building, Telford Plaza, 33 Wai Yip Street, Hong Kong, Hong Kong
  • Phone: +852.2993.2111

Related Companies

  • MTR Ho Tung Lau Depot
  • MTR (Shenzhen) Co., Ltd .
  • MTR Corp. Ltd. (United Kingdom)
  • 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

  • Stagecoach Group plc
Last Updated on 20 Apr, 2018

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