Declining earnings by 15.7% for Hong Kong's MTR Corporation in the first half of 2025
MTR Corporation Sees Significant Property Development Profit Increase in First Half of 2025
The MTR Corporation, Hong Kong's mass transit operator, has reported a substantial increase in its property development profit for the first half of 2025. The company's net income from property development soared by 218.5% year-over-year to HK$5.542 billion, according to recent financial reports.
This impressive growth is primarily attributed to the successful completion of key projects such as Ho Man Tin Station Phases I and II and Hong Kong Island South Coast Phases III and V. The property market in Hong Kong also showed signs of recovery, with the private residence price index rising for three consecutive months up to April 2025, supporting sales momentum.
MTR Corporation's CEO, Kam Chak-pui, described the first six months of 2025 as "eventful". However, it is worth noting that the property development profit increase is not explicitly described as part of the eventfulness. Instead, it is attributed to the company's earlier property development projects.
On the capital works front, MTR reported substantial progress, completing the underground structure to ground floor level at a major station by June 2025. Capital expenditure remains high, with the company planning to invest about HK$140 billion in new railroad projects spanning 2023 to 2034. This substantial investment reflects a strong pipeline but also rising near-term capital expenditure pressure due to upfront project payments.
Despite the high capital expenditure, the MTR Corporation's net profit increased by 27.5% to HK$7.7 billion during the first half of 2025. The increase is not directly linked to the company's steps forward in its expanding capital works programme but is instead due to property gains and losses from a one-off revaluation of investment properties.
The strong financial performance is further evidenced by the company's solid dividends. MTR Corporation declared a second interim dividend of HK$1.30 per share for 2025, contributing to a total 1H dividend of HK$2.60 per share. The company's shareholder net profit also rose by 27.5% in the first half of 2025, supported by strong property sector performance and improving ridership post-pandemic.
One of the key recent events in MTR's property development projects is the restart of the Tuen Mun housing project in August 2025, which plans over 1,000 housing units. This project exemplifies MTR’s "Rail Plus Property" model, aiming for high presale rates and integrating with major infrastructure developments such as the Northern Link and San Tin Technopole. The Tuen Mun project signals renewed confidence in the Hong Kong property market recovery and aligns with government initiatives for urban renewal.
In conclusion, the MTR Corporation's dual focus on expanding its transport infrastructure and capitalising on property development opportunities tied to its rail networks amid a recovering property market in Hong Kong is evident in its strong financial performance. The company's property division has seen significant growth, while its capital works programme is progressing steadily, ensuring a promising future for the corporation.
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