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MTR Corporation (0066) posted 105.9 percent year-on-year growth in net profit to HK$15.87 billion for the first half amid Hong Kong's buoyant property market, saying that it expects to tender two projects in the coming 12 months or so.
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Including the Tuen Mun A16 Station Package 2 property development project under tender, these three projects are expected to offer about 8,000 units in total, said chief executive Jeny Yeung Mei-chun.
MTR kept an interim dividend unchanged at 42 HK cents.
Underlying profit, which excludes fair value changes of investment properties, jumped 75.4 percent to HK$15.67 billion.
Revenue dropped 4.1 percent to HK$26.23 billion.
Profit from recurrent businesses inched up 1.3 percent to HK$3.43 billion, primarily due to higher contributions from the Chinese Mainland and International businesses, which were partially offset by higher depreciation and variable annual payment for its Hong Kong businesses.
Earnings from property development jumped 120.7 percent to HK$12.23 billion, mainly arising from Tai Wai Station and THE SOUTHSIDE Package 5. The company said much of the profit would contribute to its asset replacements and management as well as new railway projects.
In Hong Kong, income from transport operations inched up 2.96 percent to HK$11.85 billion, mainly driven by an increase in patronage from Cross-boundary and High Speed Rail (Hong Kong Section) service.
However, revenue from mainland and international railway, property rental and management subsidiaries, the second biggest source of income, fell 13.1 percent to HK$8.85 billion.
Hong Kong's property rental and management businesses generated HK$2.59 billion, down 2.4 percent, while local station commercial businesses were flat at HK$2.62 billion.
Total patronage for all rail and bus services was 975.4 million, an increase of 1.2 percent.
Looking ahead, MTR will continue the discussions with the government to finalise the Northern Link (Part 2) Project Agreement and move ahead at full steam on the Northern Metropolis' main transport artery.
Subject to the progress of construction and sales, the company also expects to book property development profit from THE SOUTHSIDE Package 6 and the Yau Tong Ventilation Building project and continue to book profit from Tai Wai Station in the second half of 2026.
