Core Viewpoint - The Railway Technology Innovation Alliance is focused on enhancing technological self-reliance and high-quality development in the railway sector through collaborative innovation and the establishment of an international standardization committee [1][2]. Group 1: Achievements and Innovations - The alliance has successfully implemented an innovation-driven development strategy, resulting in significant achievements such as the "Fuxing" high-speed train project winning the National Science and Technology Progress Award [1]. - Key technological advancements include the design and successful release of the CR450 train prototype, the regular operation of 30,000-ton heavy-duty trains, and the deepening of technological innovations in various fields such as mobile equipment and communication signals [1][2]. Group 2: Future Plans and Strategic Focus - The alliance plans to integrate research resources and enhance the synergy between technological and industrial innovation to elevate the overall effectiveness of the railway innovation system [2]. - Future initiatives will focus on major technological breakthroughs, promoting the transformation of scientific achievements into practical applications, and improving the railway technology innovation system [2][3]. Group 3: International Collaboration and Standardization - The establishment of the International Standardization Working Committee aims to convert alliance innovations into national and industry standards, enhancing China's railway standards on an international level [2][3]. - A joint funding agreement was signed to expand the scale of the railway basic research fund, promoting deeper collaboration between Hong Kong and mainland railway technology sectors [3].

Core Viewpoint - Hong Kong MTR Corporation has officially launched a trial "Pet Travel" program on the Light Rail, allowing pet owners to take their cats and dogs on board during weekends and public holidays starting from the 1st of the month [1] Group 1 - The program permits pet owners to carry their pets on the Light Rail, provided they purchase a "Pet Travel Permit" in addition to their own fare [1] - The trial is applicable to cats and dogs, while service animals such as guide dogs and police dogs are exempt from this requirement [1] - MTR has issued specific terms and conditions regarding the use of the "Pet Travel Permit," detailing the areas where pets can travel, designated boarding and alighting locations, and specifications for carrying bags [1]

Core Points - WeChat Pay and WeChat HK Dollar Wallet have upgraded the "Ride Code" mini-program to introduce the "Companion Code" feature, enhancing public transport service efficiency for mainland visitors and local users in Hong Kong [1][2] - The "Companion Code" allows passengers to swipe for up to two companions, facilitating easier travel for elderly or young children, thus significantly reducing ticket purchasing time and procedures [2] Group 1 - The "Companion Code" feature can be activated by switching the region to Hong Kong in the WeChat mini-program, allowing users to generate a code for up to two companions [1] - The fare for companions will be deducted from the main user's WeChat Pay wallet, streamlining the payment process and converting Hong Kong dollars to Renminbi at real-time exchange rates [1] - The "Ride Code" mini-program currently covers major public transport options in Hong Kong, including MTR, Citybus, and others, enhancing the travel experience for families [1] Group 2 - The upgrade aims to improve the travel experience for both mainland tourists and local residents, making it easier for groups to travel together [2] - The "Companion Code" feature is designed to facilitate smoother transit for families, particularly benefiting those traveling with children or elderly individuals [2]

Core Viewpoint - Hong Kong MTR Corporation has proposed a fare increase of 9.4% for the Airport Express, expected to be implemented by June 2025 [1][3]. Fare Adjustment Details - The current adult fare from Hong Kong Station to the airport is HKD 110, proposed to increase by HKD 10 to HKD 120 [3]. - The fare from Kowloon Station to the airport will rise from HKD 100 to HKD 105, while the fare from Tsing Yi Station will increase from HKD 65 to HKD 73 [3]. - For single journey tickets without Octopus, the fare from Hong Kong Station will increase from HKD 115 to HKD 130, from Kowloon Station from HKD 105 to HKD 115, and from Tsing Yi Station from HKD 70 to HKD 80 [3]. - The adult single journey fare from the airport to the exhibition center will increase by HKD 1 [3]. Context and Impact - The Airport Express has not adjusted its fares since 2017, and the service has faced losses due to reduced passenger numbers during the pandemic [3]. - Passenger volume has only recovered to about 70% of pre-pandemic levels, influenced by competition from other public transport and changes in business travel patterns [3].

Core Viewpoint - Changchun High-tech's financial performance has significantly declined, with both revenue and net profit showing substantial decreases in 2024 and the first quarter of 2025 [4][6][10]. Financial Performance Summary - In 2024, Changchun High-tech reported revenue of 13.47 billion yuan, a decrease of 7.6% year-on-year, and a net profit attributable to shareholders of 2.58 billion yuan, down 43% from the previous year [6][7]. - The fourth quarter of 2024 saw a revenue drop to 3.08 billion yuan, a decline of 20.8% year-on-year, with a net profit loss of 206 million yuan, a decrease of 122.4% [7]. - For the first quarter of 2025, the company achieved revenue of 2.99 billion yuan, down 5.66% year-on-year, and a net profit of 472 million yuan, a decrease of 44.95% [9][10]. Subsidiary Performance - Jinsai Pharmaceutical, the core subsidiary of Changchun High-tech, reported a revenue of 10.67 billion yuan in 2024, a decrease of 3.73%, and a net profit of 2.68 billion yuan, down 40.67% [10]. - In the first quarter of 2025, Jinsai Pharmaceutical's revenue was 2.62 billion yuan, an increase of 5.94%, but its net profit decreased by 38.31% to 535 million yuan [10]. Shareholder Information - As of March 31, 2025, Changchun High-tech had a total of 125,097 shareholders, reflecting a decrease of 1.80% from the previous quarter [11].

Operational Performance - MTR Corporation achieved a punctuality rate of 99.9% for passenger journeys[23] - The total passenger volume exceeded 1.9 billion trips during the year[23] - Total passenger numbers for local railway services in 2023 were 1,601.7 million, a 0.9% increase from 2022[36] - The total passenger volume for Hong Kong railway services reached 1,953.5 million, a 3.0% increase year-on-year[95] - Local railway services recorded a total passenger volume of 1,601.7 million, up 0.9%, while cross-border services saw a significant increase of 37.6% to 98.4 million passengers[96] - MTR's punctuality rate for heavy rail services reached 99.9%, exceeding operational targets and demonstrating high service reliability[108] - Train service punctuality across various lines reached 99.9%, exceeding the operational target of 99.0%[109] - Customer satisfaction index for local rail services increased to 72 in 2024 from 70 in 2023[112] Financial Performance - Total revenue for 2024 reached HKD 60,011 million, a 5.3% increase from HKD 56,982 million in 2023[28] - Regular business revenue from Hong Kong passenger services was HKD 28,356 million, up 12.3% from HKD 25,248 million in 2023[28] - EBITDA for regular business increased to HKD 17,907 million, representing a 16.9% growth from HKD 15,323 million in the previous year[28] - Net profit attributable to shareholders for the year was HKD 15,772 million, a significant increase of 102.6% from HKD 7,784 million in 2023[28] - The company reported a pre-tax profit of HKD 19,525 million, an 82.7% increase from HKD 10,685 million in the previous year[28] - The property development business in Hong Kong generated an EBITDA of HKD 12,185 million, a remarkable increase of 423.2% from HKD 2,329 million in 2023[28] - The company’s earnings per share (EPS) increased significantly, reflecting strong operational performance and strategic growth initiatives[28] - The company's recurring profit attributable to shareholders increased by 68.4% to HKD 7.21 billion for the year, alongside property development profits of HKD 10.27 billion, leading to a total profit of HKD 17.48 billion[61] Property Development - The company is continuing to advance 13 residential property projects[23] - The first phase of the Tung Chung East Station property development project has been awarded[23] - The company plans to provide approximately 10,000 residential units to the Hong Kong market through ongoing development projects[59] - As of the end of 2024, MTR has 13 residential property projects under development, expected to provide approximately 10,000 units to the local housing market[76] - The company has sold 72% of the units in the "Lang Yan Feng" project as of December 31, 2024, which was launched for pre-sale in April 2024[161] - The "Blue Coast" and "Blue Coast II" projects achieved sales of 89% and 51% respectively by the end of 2024, following their pre-sale launches in April and October 2024[163] - The total floor area for the approved property development projects is approximately 1,000,000 square meters, with various completion dates ranging from 2024 to 2031[165][168] Sustainability and Innovation - The company plans to install 8 drinking water dispensers at stations during the 2023-2024 fiscal year[25] - The first electric bus has been put into service, and research testing on hydrogen fuel-powered light rail vehicles has been completed[25] - The company is focusing on enhancing operational efficiency and environmental sustainability through innovative technologies, as demonstrated by projects from MTR Lab[57] - The company has completed or is on track to meet all 43 key performance indicators related to environmental, social, and governance standards[62] - The company has launched its first electric bus for passenger service during the review year, aiming to further reduce greenhouse gas emissions[63] - The company is committed to improving the efficiency of existing railway lines to meet the changing needs of passengers[54] - The focus on sustainable and environmentally friendly public transport services is a core aspect of the company's mission[54] Market and Economic Conditions - Future growth will depend on local economic conditions and macroeconomic factors, with ongoing upgrades and updates to the railway system to ensure service quality[91] - The property market performance remains influenced by local and global economic conditions and interest rate trends, with ongoing development opportunities along the railway network[146] - The company is facing challenges in constructing new extensions and stations on operational railway lines, requiring work during non-traffic hours[173] - The company is exploring business opportunities outside Hong Kong, including in mainland China and overseas markets, to enhance its brand and revenue potential[80] Community Engagement and Social Responsibility - Over 150 training sessions on diversity, equality, and inclusion were held for employees[25] - More than 10% of interns were from disabled or diverse ethnic backgrounds[25] - The company is committed to social inclusion, organizing 348 volunteer activities with participation from 5,847 volunteers in 2024[65] - The company has established a scholarship program worth HKD 5 million to support students aspiring to enter the railway industry[66] - MTR Corporation celebrated the 45th anniversary of its metro services, highlighting its significant role in Hong Kong's economic and social development[72] Infrastructure Development - The railway network in Hong Kong spans 271 kilometers with 99 stations, reflecting significant infrastructure development[50] - The company has initiated new railway projects and development plans as part of its long-term economic growth strategy for Hong Kong[54] - The completion of the East Rail Line cross-harbor section two years ago marked a significant advancement in Hong Kong's railway development[54] - The company continues to support the government in planning and constructing new railway projects, marking a new phase in Hong Kong's infrastructure development[76] - The company is actively planning railway expansion projects, including the Tung Chung Line extension and the Tuen Mun South extension, to enhance connectivity and support sustainable economic development[172] Revenue Streams and Business Diversification - MTR's international business diversification includes the opening of new metro stations in Sydney and the completion of the first phase of Shenzhen Metro Line 13[77] - Revenue from the company's subsidiaries in mainland China and Macau increased by 31.2% to HKD 2.589 billion, while international railway business revenue decreased by 4.6% to HKD 22.878 billion[195] - The company operates eight railway services outside Hong Kong, with a total passenger volume of 2.52 billion, providing diversified revenue sources and promoting Hong Kong's brand internationally[188]

Group 1 - The China Securities Index for Hong Kong, Shanghai, and Shenzhen interconnection logistics shows a recent performance with a 1.53% increase over the past month, a 3.20% decrease over the past three months, and a year-to-date decline of 3.20% [1] - The index is based on the comprehensive index samples and the China Securities 500 Index samples, reflecting the overall performance of securities listed in the interconnection range across the three markets [1] - The index's top ten holdings include companies such as Beijing-Shanghai High-Speed Railway (9.37%), SF Holding (6.77%), and COSCO Shipping Holdings (5.95%) [1] Group 2 - The industry composition of the index shows that railway transportation accounts for 18.28%, shipping for 17.98%, and express delivery for 16.64% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - In case of special circumstances, temporary adjustments to the index samples may occur, including the removal of companies that are delisted or undergo significant corporate changes [2]

Core Viewpoint - MTR Corporation (00066) successfully issued a total of $3 billion in three tranches of US dollar bonds, achieving an oversubscription of over 4.6 times, indicating strong investor demand and market confidence [1] Group 1: Bond Issuance Details - The bond issuance included three tranches: a 5-year tranche of $500 million with a final pricing of T+40 basis points and a coupon rate of 4.375% [1] - A 10-year tranche of $1 billion was priced at T+58 basis points with a coupon rate of 4.875% [1] - The 30-year tranche, the largest at $1.5 billion, was priced at T+70 basis points with a coupon rate of 5.25% [1] Group 2: Market Context and Implications - The issuance set records as the largest US dollar bond issuance by a Hong Kong issuer under the S rule, and the 30-year tranche is the largest of its kind in Asia [1] - The overall sentiment in the Asian bond market is positive, with ample liquidity and credit spreads remaining at historical lows, leading to a significant increase in bond issuance compared to previous years [1] - The successful transaction is expected to set a new benchmark for Hong Kong and Asian issuers in the bond market [1]

Core Insights - Hong Kong MTR Corporation (MTR) reported a significant increase in property profits, rising by 392.8%, amidst losses faced by domestic rail companies [1] - For the fiscal year 2024, MTR's total revenue reached HKD 60.011 billion, a slight increase of 5.3% from 2023, with net profit soaring by 102.6% to HKD 15.8 billion [1] - The property development segment emerged as the main driver of MTR's financial health, with profits reaching HKD 10.265 billion, nearly quadrupling year-on-year [1][2] Revenue Structure - MTR's "rail + property" model allows the company to develop land along railway lines, paying for land at pre-construction prices and reaping the benefits post-construction [2] - The property segment now accounts for 65% of total profits, significantly surpassing traditional revenue sources such as passenger services and station businesses [2] - Property leasing income increased by 5.9% to HKD 5.076 billion, bolstered by the opening of new shopping centers [3] Market Dynamics - The recovery of the Hong Kong property market post-policy changes has provided crucial support for MTR's residential projects [5] - Following the government's removal of property cooling measures, the market saw a 17.1% increase in property transaction volume, reaching 67,979 contracts in 2024 [6] - MTR launched several projects shortly after the policy changes, achieving high sales rates for new developments [7] Future Prospects - MTR has a land reserve of 890,000 square meters, with significant residential supply expected in the next 12 months [4] - The company anticipates that property income will not only fund railway construction but also support long-term asset maintenance [4] - Despite the positive outlook, there are concerns about potential market fluctuations affecting profit margins in the property development sector [8][9] Industry Trends - The "rail + property" model is gaining traction in mainland China's rail transit sector, with several companies reporting substantial growth in real estate development revenues [10] - In 2024, 22 cities in China are expected to release 45 parcels of TOD land, indicating a continued push for integrated transport and property development [11] - MTR's operational model differs from mainland counterparts, as it does not directly engage in real estate development but collaborates with developers [12][13]

Investment Rating - The investment rating for the company is "Buy" [8] Core Views - The company reported a net profit of HKD 15.8 billion for 2024, exceeding expectations due to higher-than-expected property development profits [1] - The property development profit reached HKD 10.3 billion in 2024, a significant increase of 393% year-on-year, driven by the accelerated recognition of project profits [2] - The company is expected to enter a peak period for residential handovers in 2025-2026, with a substantial number of projects awaiting recognition [2] - The company plans to upgrade existing railway facilities and construct new rail lines, with capital expenditures projected to reach HKD 90.8 billion from 2025 to 2027 [1] - The company maintains a net debt ratio of 32% as of the end of 2024, which supports a progressive dividend policy [1] Summary by Sections Financial Performance - The company's revenue for 2024 was HKD 60 billion, a year-on-year increase of 5.3% [1] - The recurring business profit was HKD 7.2 billion, up 68% year-on-year, aligning with expectations [1] - The proposed dividend for 2024 is HKD 1.31, maintaining the same level as the previous year, resulting in a dividend yield of 5.0% [1] Property Development - The company is expected to benefit from a large number of projects awaiting recognition in 2025-2026, particularly those located along the metro lines, which are more attractive compared to competitors [2] - The short-term outlook for the Hong Kong property market remains weak, but the company’s projects are expected to provide stable profitability due to their "minimum guarantee + profit sharing" model [2] Retail and Rental Market - The EBIT for Hong Kong station business decreased by 0.5% to HKD 3.773 billion in 2024, impacted by a 9.8% decline in new rental rates despite the recovery of duty-free shops [3] - The EBIT for Hong Kong property leasing and management increased by 4.3% to HKD 4.169 billion, mainly due to contributions from two newly opened shopping malls, although new rental rates still fell by 8.9% [3] International Operations - The EBIT for Hong Kong railway operations improved significantly, moving from a loss of HKD 1.111 billion in 2023 to near breakeven, driven by increased cross-border passenger flow [4] - Revenue from cross-border services, high-speed rail, and airport express services grew by 62%, 33%, and 21% year-on-year, respectively [4] Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025 and 2026 has been adjusted downwards by 10% and 11% to HKD 20.3 billion and HKD 21.2 billion, respectively [5] - The target price has been adjusted to HKD 29.5, reflecting a 20% discount to account for the diversified business valuation [5][13]