MTR Corp’s profit more than doubles to HK$15.8 billion on property gains

Net profit at Hong Kong’s rail operator the MTR Corporation more than doubled to HK$15.87 billion (US$2 billion) in the first half of the year, from HK$7.70 billion a year earlier, as strong gains from property development offset largely flat performance in its rail and commercial operations.

The partly privatised corporation reported a 120.7 per cent year-on-year increase in property-development profit to HK$12.23 billion, driven mainly by projects at Tai Wai Station and The Southside “Package 5” in Wong Chuk Hang.

The MTR said it would earmark “much of the profit” for asset replacement and maintenance, as well as the development of new railway projects.

Despite the bumper profit, the interim dividend remained the same at 42 HK cents.

Revenue fell 4.1 per cent year on year to HK$26.23 billion during the six-month period.

In Hong Kong, the MTR is required to meet a HK$140 billion capital-investment commitment for six railway projects in Tuen Mun, Lantau Island and the Northern Metropolis over the coming years.