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MTR Corporation (HK:0066)
:0066
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MTR (0066) AI Stock Analysis

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HK:0066

MTR

(OTC:0066)

Rating:73Outperform
Price Target:
HK$30.00
▲(13.81% Upside)
MTR's strong financial performance and attractive valuation are key strengths, offset by technical indicators suggesting bearish momentum. The company's robust revenue and profit growth, combined with a low P/E ratio and high dividend yield, make it appealing. However, negative free cash flow and bearish technical signals warrant caution.
Positive Factors
Earnings
The underlying profit increased by 55% due to higher-than-expected development earnings.
Project Development
The signing of the Northern Link Part 1 Project Agreement is a significant development for MTRC.
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
Debt Levels
Higher gearing ahead due to rail network expansion.
Market Sensitivity
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 is a major public transport operator based in Hong Kong. It primarily provides rail transport services, operating the Mass Transit Railway (MTR) system in Hong Kong. Beyond transportation, MTR extends its business into property development and management, leveraging its extensive expertise in urban development to support sustainable growth. The company also has international operations, managing and consulting on railway systems in various global locations.
How the Company Makes MoneyMTR Corporation makes money through several key revenue streams. The primary source is fare revenue from its rail transport services, which includes the operation of the MTR system in Hong Kong. The company also generates significant income from property development and management, with projects often located above or near its stations, creating integrated communities. Additionally, MTR earns from station commercial businesses such as advertising, retail, and leasing. Internationally, the company receives revenue from operating rail systems and providing consultancy and project management services. Partnerships with local governments and private enterprises in different regions also contribute to its earnings.

MTR Financial Statement Overview

Summary
MTR shows strong revenue and profit growth with efficient operations. The balance sheet is robust, with manageable leverage and strong equity. However, negative free cash flow due to high capital expenditures indicates cash flow management challenges.
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
Negative
Last Price26.36
Price Trends
50DMA
27.42
Negative
100DMA
26.69
Negative
200DMA
25.80
Positive
Market Momentum
MACD
-0.24
Positive
RSI
32.32
Neutral
STOCH
2.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0066, the sentiment is Negative. The current price of 26.36 is below the 20-day moving average (MA) of 27.23, below the 50-day MA of 27.42, and above the 200-day MA of 25.80, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 32.32 is Neutral, neither overbought nor oversold. The STOCH value of 2.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0066.

MTR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$163.93B9.499.61%4.92%-0.99%80.58%
64
Neutral
$10.96B16.358.89%1.96%2.68%-15.17%
$7.69B9.567.89%5.01%
$2.67B20.943.59%2.45%
$7.54B13.489.65%2.99%
€603.97M18.011.61%
51
Neutral
HK$5.20B78.117.66%0.50%-14.80%11.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0066
MTR
26.36
0.10
0.39%
CRYYF
China Railway Signal & Communication
0.45
0.11
32.35%
GNGYF
Guangshen Railway Company
0.40
0.14
53.85%
ZHUZF
Zhuzhou CRRC Times Electric Co
5.10
1.72
50.89%
DE:KWO
Transport International Holdings Limited
1.07
0.20
22.99%
HK:2169
Canggang Railway Limited
1.30
0.62
91.18%

MTR Corporate Events

MTR Corporation Schedules Board Meeting to Review Interim Results
Jul 24, 2025

MTR Corporation Limited has announced that its Board of Directors will meet on August 14, 2025, to approve the unaudited financial results for the first half of the year and consider the declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its operational strategies and market positioning.

The most recent analyst rating on (HK:0066) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

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.

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: Aug 22, 2025