The MTR Corporation reported on Thursday that its net profit for the first half exceeded HK$15.78 billion, more than double that of a year ago.

The jump came as strong gains from property development offset flat performances at its rail and commercial operations.

Profits from property development rose by more than 120 percent to HK$12.2 billion, mainly thanks to gains from projects at Tai Wai Station and Southside Package 5 in Wong Chuk Hang.

The group said much of the profits from real estate development would be used to invest in new railway projects and asset replacements.

Earnings from recurrent businesses, meanwhile, rose by 1.3 percent to over HK$3.43 billion.

The fair value gain from investment properties was HK$205 million during the six-month period, compared to a loss of HK$1.224 billion in the same period last year.

Rail revenues declined by 4.1 percent to approximately HK$26.23 billion, despite rises in patronage from cross-boundary and high-speed services.

The board declared an interim dividend of 42 Hong Kong cents per share, maintaining the same level as last year.

Chief executive Jeny Yeung noted the company had just set out a five-year plan to transform the company to become a "future-fit, AI and technology-empowered organisation" to ignite long-term success.

"As we carry out one of the largest railway expansions in our history, we are also contending with external challenges such as global economic headwinds, shifting consumer and travel patterns, uncertainties in the retail and property markets, and increased competition both at home and abroad," she said.

"In the second half of the year, we anticipate that our patronage will keep seeing mild increases based on recent trends, while our advertising and property rental businesses may also benefit from the gradual stabilisation of the retail and property markets.

"As always, we will keep a close eye on inflation and interest rate trends as macroeconomic and geopolitical conditions continue to fluctuate."

The group also noted it would expand its recurrent revenue streams, while exercising prudent and proactive financial and cash flow management to counter the challenges.

Looking ahead, it said it would continue 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 development, on top of commencing designs for the Pak Shek Kok Station project.

To fund a series of new railway projects in the city, the MTR said it had raised HK$57.34 billion through bond sales so far this year.




Edited by Tony Sabine