MTR Corporation (00066) reported net profit attributable to shareholders of HK$15.87 billion for the six months ended 30 June 2026, more than doubling the HK$7.71 billion booked a year earlier. The surge was driven by property development profit of HK$12.23 billion—mainly from Tai Wai Station and THE SOUTHSIDE Package 5—up 120.7% year on year.

Group revenue fell 4.1% to HK$26.23 billion as the expiry of overseas rail contracts offset higher Hong Kong ridership. Recurrent business profit inched up 1.3% to HK$3.43 billion, supported by stronger Cross-boundary and High Speed Rail patronage but tempered by higher depreciation and variable annual payments, which pushed Hong Kong transport operations to an EBIT loss of HK$141 million (H1 2025: HK$98 million profit).

Segment highlights: • Hong Kong transport revenue rose 3.0% to HK$11.85 billion; average heavy-rail service punctuality held at 99.9%. • Station commercial revenue was broadly stable at HK$2.62 billion, with kiosk rental reversion at –6.7%; EBIT slipped 2.4% to HK$1.76 billion. • Property rental and management revenue declined 3.0% to HK$2.59 billion amid cautious retail sentiment; EBIT fell 3.5% to HK$2.01 billion. • Chinese Mainland & international subsidiaries delivered EBIT of HK$0.43 billion, up 5.1%, helped by better performance in Melbourne. • Share of profit from associates and JVs climbed 28.3% to HK$0.77 billion, led by improved Hangzhou operations.

Group EBITDA margin (including overseas units) expanded to 34.1% from 32.3%, while total recurrent EBIT margin eased 0.6 percentage points to 14.8%.

Cash & Balance Sheet: Multiple green bond issues—EUR 3 billion, HK$18.8 billion and AUD 2 billion—boosted cash and deposits to HK$113.99 billion (31 Dec 2025: HK$44.24 billion). Total debt reached HK$170.36 billion, lifting total liabilities to HK$263.88 billion. Net debt-to-equity improved slightly to 21.7% (31 Dec 2025: 22.5%), and interest coverage strengthened to 34.8 times (H1 2025: 12.5 times).

Capital Deployment: First-half capital expenditure amounted to HK$10.50 billion, primarily for asset upgrades and seven ongoing Hong Kong rail expansion projects, including the Tung Chung Line Extension, Tuen Mun South Extension, Kwu Tung Station and Northern Link (Part 1). Planned capex and investment for 2026-28 totals about HK$84.80 billion.

Dividend: An unchanged interim dividend of HK$0.42 per share will be paid on 15 September 2026 to shareholders on record as of 2 September 2026.

Outlook: Management targets finalising the Northern Link (Part 2) Project Agreement, advancing the Pak Shek Kok Station design and tendering two additional property projects within 12 months. Subject to construction and sales progress, further property development gains are expected from THE SOUTHSIDE Package 6, Yau Tong Ventilation Building and remaining units at Tai Wai Station in H2 2026.