Hong Kong’s MTR Corp profit more than doubles to HK$15.87 billion on property gains

MTR says it will earmark ‘much of the profit’ for asset replacement and maintenance, as well as the development of new railway projects

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.

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.

To improve connectivity in the Northern Metropolis, the corporation signed a project agreement in July last year for Northern Link Part 1. The project is expected to be completed by 2034 and will include a main line and a spur line connecting to the Huanggang border checkpoint.