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MTR Corporation (HK:0066)
:0066

MTR (0066) AI Stock Analysis

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HK

MTR

(OTC:0066)

Rating:79Outperform
Price Target:
HK$32.00
▲(15.94%Upside)
MTR's overall strong financial performance, particularly in revenue and profitability growth, significantly supports its stock score. The robust valuation with a low P/E ratio and high dividend yield further enhances its appeal. Positive technical trends contribute, though the approaching overbought RSI level warrants caution. Cash flow concerns slightly offset these strengths, emphasizing the need for improved cash management.
Positive Factors
Financial Performance
FY24 underlying profit more than doubled to HKD17.5bn, ahead of estimates on stronger-than-expected development.
Revenue Growth
Revenue from Hong Kong transportation operations surged 19.2% on higher patronage.
Stock Valuation
The stock is now trading at a 31% discount to the appraised current NAV and is attractively valued from a historical perspective.
Negative Factors
Financial Risk
Higher gearing ahead due to rail network expansion.
Real Estate Market Impact
Home prices play a crucial role in dictating the company’s future earnings outlook and share price performance.

MTR (0066) vs. iShares MSCI Hong Kong ETF (EWH)

MTR Business Overview & Revenue Model

Company DescriptionMTR Corporation Limited designs, constructs, operates, maintains, and invests in railways in Hong Kong, Australia, Mainland China, Macao, Sweden, and the United Kingdom. It operates through Hong Kong Transport Operations; Hong Kong Station Commercial Businesses; Hong Kong Property Rental and Management Businesses; Hong Kong Property Development; Mainland China and International Railway, Property Rental and Management Businesses; Mainland China Property Development; and Other Businesses segments. The company offers domestic and cross-boundary railway services, airport express, and a light rail and bus feeder system. It operates 266.3 kilometers of rail network; and 98 stations. The company also provides intercity railway services; leases advertising, office, retail, and car parking spaces at railway stations; offers telecommunication and bandwidth services in railway premises; provides estate management services; and invests in, develops, manages, and leases properties, including shopping malls and offices. In addition, it is involved in the construction, operation, and maintenance of mass transit railway systems. Further, it operates Octopus, a contactless smartcard common payment system; and provides railway consultancy and project management services, as well as offers railway management, engineering, and technology training services. Additionally, the company administers the operation of MTR academy; and provides station management, financing, technical support, and mobile and fixed telecommunication network and related services. It also operates cable car system and a theme village. MTR Corporation Limited was founded in 1975 and is headquartered in Kowloon Bay, Hong Kong.
How the Company Makes MoneyMTR Corporation Limited generates revenue through several key streams. The primary revenue source is from its transport operations, which include fares collected from passengers using its extensive rail network. Additionally, MTR benefits significantly from its property-related businesses, which encompass property development, sales, and leasing. The company develops residential and commercial properties near its rail lines, thus creating a synergistic relationship between transport and real estate. This includes rental income from shopping malls, office spaces, and residential units they manage. MTR also earns from advertising within its stations and trains. Furthermore, MTR engages in international railway consultancy and operations, providing management and technical expertise to rail systems worldwide, which contributes to its earnings. Strategic partnerships with local governments and corporations in the regions where it operates also play a vital role in its business model, allowing for sustainable expansion and revenue growth.

MTR Financial Statement Overview

Summary
Overall, MTR exhibits strong revenue and profit growth, underpinned by efficient operations. The balance sheet is robust, with manageable leverage and strong equity. However, cash flow stability is a concern, with negative free cash flow due to high capital expenditures.
Income Statement
85
Very Positive
MTR has demonstrated strong revenue growth, with an 8.5% increase from 2023 to 2024. The gross profit margin improved significantly, reflecting enhanced operational efficiency. The net profit margin also more than doubled, indicating strong profitability. EBIT and EBITDA margins are healthy, showing robust core operations.
Balance Sheet
78
Positive
The company maintains a stable balance sheet with a debt-to-equity ratio of 0.42, indicating a conservative use of leverage. ROE improved to 8.5%, showing increased efficiency in generating profits from equity. The equity ratio of 50.5% suggests a solid financial position with reasonable equity financing.
Cash Flow
70
Positive
Free cash flow improved but remains negative, highlighting ongoing capital expenditures. Operating cash flow covers net income well, suggesting strong cash generation from operations. However, free cash flow to net income is less favorable, indicating potential cash management challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue60.01B56.98B47.81B47.20B42.54B
Gross Profit13.71B10.91B2.47B3.03B95.00M
EBITDA27.06B11.56B17.90B17.80B2.71B
Net Income15.77B7.78B9.83B9.55B-4.81B
Balance Sheet
Total Assets367.50B346.43B327.08B292.08B290.57B
Cash, Cash Equivalents and Short-Term Investments27.89B22.38B16.37B21.20B21.22B
Total Debt77.68B59.63B58.13B54.13B60.79B
Total Liabilities181.37B167.57B147.17B112.05B113.59B
Stockholders Equity185.63B178.34B179.29B179.71B176.79B
Cash Flow
Free Cash Flow-925.00M-1.14B-12.53B-1.17B-5.35B
Operating Cash Flow18.49B11.20B6.76B7.47B772.00M
Investing Cash Flow-20.27B-7.72B-1.99B5.97B-675.00M
Financing Cash Flow8.50B1.87B-4.57B-14.53B2.84B

MTR Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.60
Price Trends
50DMA
27.28
Positive
100DMA
26.10
Positive
200DMA
26.20
Positive
Market Momentum
MACD
0.30
Positive
RSI
46.26
Neutral
STOCH
42.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0066, the sentiment is Positive. The current price of 27.6 is below the 20-day moving average (MA) of 27.97, above the 50-day MA of 27.28, and above the 200-day MA of 26.20, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 42.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0066.

MTR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$171.64B10.818.65%6.45%5.32%102.27%
73
Outperform
€4.70B23.791.11%5.60%4.19%-54.47%
66
Neutral
$46.45B10.709.62%3.55%11.54%16.09%
65
Neutral
$21.00B14.213.59%3.88%
64
Neutral
HK$56.41B9.517.63%5.55%-10.19%0.17%
58
Neutral
HK$14.03B4.45-3.01%7.32%3.67%-54.16%
48
Neutral
HK$5.64B88.057.42%0.47%-27.29%-5.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0066
MTR
27.45
3.52
14.70%
HK:2169
Canggang Railway Limited
1.40
0.51
57.30%
HK:3969
China Railway Signal & Communication
3.41
0.11
3.27%
HK:0525
Guangshen Railway Company
1.95
-0.19
-8.92%
HK:0062
Transport International Holdings Limited
8.87
0.23
2.63%
HK:3898
Zhuzhou CRRC Times Electric Co
30.95
0.35
1.14%

MTR Corporate Events

MTR Corporation Initiates Northern Link Project Phase 1
Jul 8, 2025

MTR Corporation Limited has entered into a project agreement with the Hong Kong Government for the first phase of the Northern Link Project, which involves the financing, design, and construction of part of the NOL Main Line and the detailed planning of the NOL Spur Line. This strategic move is expected to strengthen MTR’s position in the transportation sector by enhancing connectivity and infrastructure, with the project slated for completion by 2034. The agreement marks a significant step in the company’s long-term development plans, although future agreements are needed to ensure commercial viability and stakeholder benefits.

The most recent analyst rating on (HK:0066) stock is a Sell with a HK$19.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Corporation Appoints Jeny Yeung as New CEO
Jun 25, 2025

MTR Corporation Limited has announced the appointment of Ms. Jeny Yeung Mei-chun as the new Chief Executive Officer, effective January 1, 2026. Ms. Yeung, who has been with the company since 1999 and currently serves as the Managing Director of Hong Kong Transport Services, will succeed Dr. Jacob Kam Chak-pui. Her extensive experience in the transport sector and various leadership roles within the company positions her to lead MTR’s operations both in Hong Kong and internationally. This leadership change is expected to influence the company’s strategic direction and operational performance, potentially impacting stakeholders and the broader transportation market.

The most recent analyst rating on (HK:0066) stock is a Sell with a HK$19.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Corporation Granted Leave to Appeal Profits Tax Decision
May 27, 2025

MTR Corporation Limited has been granted permission by the Court of First Instance to appeal a decision by the Inland Revenue Board of Review regarding a profits tax assessment. The company, confident in its legal standing, will proceed with the appeal without making additional tax provisions, indicating a potential impact on its financial planning and stakeholder interests.

The most recent analyst rating on (HK:0066) stock is a Sell with a HK$20.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Corporation Announces Board and Committee Changes at 2025 AGM
May 21, 2025

MTR Corporation Limited announced the successful passage of all proposed resolutions at its 2025 Annual General Meeting, including changes in its board of directors and committee compositions. Notably, Walter Chan Kar-lok retired as an Independent Non-executive Director, with Ir Shen Shuk-ching joining as a new INED and Dr Carlson Tong taking over as chairman of the Nominations Committee. These changes are expected to influence the company’s governance and strategic direction, potentially impacting stakeholders and the company’s operational focus.

The most recent analyst rating on (HK:0066) stock is a Sell with a HK$20.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Corporation Announces New Board and Executive Directorate Composition
May 21, 2025

MTR Corporation Limited has announced the composition of its Board and Executive Directorate, highlighting the roles and functions of its members. This announcement, effective from May 21, 2025, underscores the company’s commitment to structured governance and strategic oversight, which could impact its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:0066) stock is a Sell with a HK$20.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Corporation Announces Board and Executive Directorate Composition
Apr 30, 2025

MTR Corporation Limited has announced the composition of its Board and Executive Directorate, highlighting the roles and functions of its members. The announcement underscores the company’s commitment to governance and strategic oversight, with various committees focusing on areas such as audit and risk, capital works, and environmental and social responsibility. This structure is poised to enhance MTR’s operational efficiency and strengthen its industry positioning, potentially benefiting stakeholders through improved management and oversight.

MTR Corporation Appoints Kevin Choi as Alternate Director
Apr 14, 2025

MTR Corporation Limited has announced the appointment of Mr. Kevin Choi as an Alternate Director to the office of the Secretary for Transport and Logistics, effective from April 14, 2025. Mr. Choi, who has an extensive background in various governmental roles, including the Chief Executive’s Office and the Transport and Housing Bureau, will bring his expertise to the company, potentially impacting its strategic direction and strengthening its ties with the Hong Kong government.

MTR Corporation Announces 2025 AGM with Key Resolutions
Apr 10, 2025

MTR Corporation Limited has announced its annual general meeting (AGM) scheduled for May 21, 2025, where key business matters will be addressed. These include the approval of financial statements, declaration of dividends, re-election of board members, and the election of a new director. Additionally, a resolution will be considered to authorize the board to issue new shares, with specific conditions set on the discount and volume of shares to be issued. This meeting is crucial for stakeholders as it outlines the company’s future governance and financial strategies, potentially impacting its market position and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 07, 2025