MTR CORPORATION(00066)2024-04-11 09:20Passenger Volume and Service Performance - Total passenger volume exceeded 1.8 billion人次[7] - Punctuality rate of heavy rail network exceeded 99.9%[7] - Total passenger volume for 2023 reached 1.8968 billion, a 24.9% increase year-over-year, with Sunday average ridership rising to 5.52 million[113] - Local railway services recorded 1.5867 billion passengers, a 18.9% increase, with Sunday average ridership up 19.1% to 4.67 million[114] - Cross-border services resumed in January and February 2023, recording 71.5 million passengers, though not yet back to pre-pandemic levels[114] - High-speed rail (Hong Kong Section) passenger volume reached 20.1 million, exceeding pre-pandemic levels, driven by increased frequency and new stations[114] - Airport Express ridership surged to 10.8 million, a 249.6% increase compared to 2022[113] - MTR's passenger volume increased in 2023, with high-speed rail (Hong Kong section) surpassing pre-pandemic levels, while cross-border services remained below pre-pandemic levels[34] - Total passenger trips for Hong Kong transport operations reached 1,586.7 million, an 18.9% increase from the previous year[21] - Airport Express daily ridership surged by 249.6% to 29.7 thousand passengers[21] - High-speed rail (Hong Kong section) daily ridership reached 57.3 thousand passengers, showing significant growth[21] - Light Rail and Bus ridership on Sundays increased by 16.7% to 601.8 thousand passengers[21] - MTR's heavy rail network achieved over 99.9% on-schedule performance and punctuality in 2023, operating over 1.79 million train trips[121] - The light rail network operated over 920,000 train trips in 2023, with only 3 delays exceeding 31 minutes[121] - Train service reliability for Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line, Disneyland Resort Line, and Airport Express reached 3,694,324 car-km before a delay of 5 minutes or more, exceeding the target of 1,000,000 car-km[122] - Train service reliability for East Rail Line and Tuen Ma Line reached 6,044,970 car-km before a delay of 5 minutes or more, significantly exceeding the target of 1,000,000 car-km[122] - Service Quality Index for local rail and cross-border services improved to 70 in 2023 from 68 in 2022[123] - Service Quality Index for Airport Express reached 83 in 2023, with no comparable data for 2022 due to survey suspension[123] - Service Quality Index for High Speed Rail (Hong Kong Section) reached 88 in 2023, with no comparable data for 2022 due to survey suspension[123] - Fare Index for local rail and cross-border services increased to 65 in 2023 from 64 in 2022[123] - Fare Index for High Speed Rail (Hong Kong Section) reached 82 in 2023, with no comparable data for 2022 due to survey suspension[123] Revenue and Financial Performance - Total revenue increased by 19.2% to HKD 56,982 million in 2023 compared to HKD 47,812 million in 2022[19] - Hong Kong train operations revenue grew by 50.2% to HKD 20,131 million in 2023 from HKD 13,404 million in 2022[19] - Hong Kong station commercial revenue increased by 66.3% to HKD 5,117 million in 2023 from HKD 3,077 million in 2022[19] - Total EBITDA decreased by 9.5% to HKD 17,639 million in 2023 from HKD 19,500 million in 2022[19] - Property development business revenue rose by 19.6% to HKD 56,982 million in 2023 from HKD 47,639 million in 2022[19] - Net profit attributable to shareholders declined by 20.8% to HKD 7,784 million in 2023 from HKD 9,827 million in 2022[19] - Hong Kong property leasing and management revenue increased by 6.3% to HKD 5,079 million in 2023 from HKD 4,779 million in 2022[19] - Other business revenue surged by 92.8% to HKD 700 million in 2023 from HKD 363 million in 2022[19] - Investment property fair value gain was HKD 1,386 million in 2023 compared to a loss of HKD 810 million in 2022[19] - Interest and financial expenses increased by 16.0% to HKD 1,139 million in 2023 from HKD 982 million in 2022[19] - EBITDA margin increased to 26.9%, with a significant improvement of 10.4 percentage points compared to the previous year[21] - EBIT margin (excluding Mainland China and international subsidiaries) rose to 20.4%, up by 16.7 percentage points year-over-year[21] - Net debt-to-equity ratio decreased to 26.5%, reflecting a reduction of 3.2 percentage points[21] - The company's market capitalization stood at HKD 188,381 million as of December 31[21] - Basic earnings per share from core business decreased by 40.1% to HKD 1.03[21] - MTR's fare and rental income grew in 2023 due to the resumption of cross-border services and high-speed rail operations, leading to increased passenger and retail traffic[34] - MTR's recurring business profit increased to HK2.083 billion, resulting in a basic business profit of HK7.784 billion, with earnings per share of HK0.89 per share, totaling HK$1.31 per share for the year[36] - Total revenue for 2023 reached HKD 56.982 billion, a 19.2% increase compared to 2022, driven by the resumption of cross-border services, high-speed rail (Hong Kong section) ticket revenue, and duty-free shop rental income[89] - Recurring business profit for 2023 was HKD 4.281 billion, a significant improvement from HKD 157 million in 2022, primarily due to the recovery of cross-border services, high-speed rail operations, and increased passenger volume in local rail services[90] - Hong Kong passenger services EBIT improved to HKD 2.681 billion in 2023 from a loss of HKD 2.463 billion in 2022, with Hong Kong train operations reducing losses by 76.5% to HKD 1.111 billion[88] - The company made special loss provisions totaling HKD 1.022 billion in 2023, including HKD 702 million for the early termination of the Stockholm commuter rail franchise and HKD 320 million for Mälartåg regional transport challenges[90] - Property development profit (after tax) in Hong Kong decreased by 80.5% to HKD 2.035 billion in 2023, compared to HKD 10.413 billion in 2022, due to fewer development projects[88] - Investment property fair value measurement gains (after tax) were HKD 1.42 billion in 2023, a significant turnaround from a loss of HKD 810 million in 2022[88] - The company's recurring EBIT (before special loss provisions) increased by 184.5% to HKD 8.122 billion in 2023, compared to HKD 2.855 billion in 2022[88] - Hong Kong station commercial business EBIT grew by 67% to HKD 3.792 billion in 2023, driven by increased passenger traffic and retail activities[88] - The company's basic business profit (including recurring and property development profits) decreased by 40.2% to HKD 6.364 billion in 2023, compared to HKD 10.637 billion in 2022[88] - Income tax expenses increased significantly by 260.7% to HKD 1.302 billion in 2023, compared to HKD 361 million in 2022, reflecting higher profitability[88] - Hong Kong Transport Operations: EBIT loss narrowed by HKD 3.622 billion or 76.5% to HKD 1.111 billion in 2023, driven by increased passenger volumes from cross-border services, high-speed rail (Hong Kong section), and Airport Express, as well as the full-year contribution from the East Rail Line Cross-Harbour Extension[91] - Hong Kong Station Commerce: EBIT surged by HKD 1.522 billion or 67.0% to HKD 3.792 billion, primarily due to the recovery of rental income from duty-free shops following the reopening of cross-border stations[91] - Hong Kong Property Leasing and Management: EBIT increased by HKD 199 million or 5.2% to HKD 3.999 billion, supported by reduced rental concessions and contributions from new shopping malls, "The Wai" and "THE SOUTHSIDE"[91] - Mainland China and International Rail, Property Leasing, and Management Subsidiaries: EBIT before special loss provisions fell by HKD 438 million or 45.5% to HKD 524 million, impacted by challenges in Stockholm commuter rail and Mälartåg operations, and the exhaustion of government subsidies for Shenzhen Metro Line 4[91] - Other Businesses, Project Research, and Business Development: EBIT loss decreased by HKD 198 million or 36.7% to HKD 341 million, driven by improved financial performance of "Ngong Ping 360" due to increased visitor numbers[92] - Share of Profits from Associates and Joint Ventures: Increased by HKD 164 million or 15.0% to HKD 1.259 billion, mainly due to higher profits from Octopus Holdings Limited and improved performance in mainland China operations[93] - Total Recurring EBIT (before special loss provisions): Rose by HKD 5.267 billion to HKD 8.122 billion in 2023[94] - Property Development Profit (after tax): Decreased by HKD 8.397 billion to HKD 2.083 billion, primarily due to the absence of profit contributions from three development projects recorded in 2022[95] - Investment Property Fair Value Measurement Gains (after tax): Recorded HKD 1.420 billion, including HKD 1.360 billion from the initial fair value measurement of "THE SOUTHSIDE" mall[96] - Net Profit Attributable to Shareholders: Declined by HKD 2.043 billion or 20.8% to HKD 7.784 billion, reflecting lower profits from recurring business, property development, and investment property fair value measurements[97] - Operating cash flow increased to HKD 11.197 billion in 2023, up from HKD 6.757 billion in 2022, driven by higher recurring business profits[105] - Net receipts related to property development amounted to HKD 6.102 billion, including HKD 7.109 billion in cash receipts from major projects, partially offset by HKD 1.007 billion in payments[105] - Other net cash outflows from investing activities totaled HKD 11.846 billion, with HKD 8.463 billion allocated to upgrading Hong Kong's railway assets and HKD 2.309 billion for railway extension projects[106] - The company paid HKD 7.595 billion in dividends to shareholders in 2023, down from HKD 8.562 billion in 2022 due to adjustments in interim dividend ratios[107] Property Development and Leasing - New shopping malls "The Wai" and "THE SOUTHSIDE" opened[7] - MTR opened two new shopping malls in 2023, adding approximately 107,620 square meters of retail space, and is advancing 14 residential property projects, providing around 14,000 residential units[34] - The company's two new shopping malls, "The Wai" and "THE SOUTHSIDE," have opened, and 14 new residential projects are expected to provide approximately 14,000 high-quality residential units in the medium term[73] - The new MTR shopping mall "The Wai" in Tai Wai, with a gross floor area of 60,620 sqm, began trial operations in July 2023[65] - "THE SOUTHSIDE" mall in Wong Chuk Hang recorded a fair value gain of HKD 1.36 billion in 2023 during its initial trial operation phase[65] - Hong Kong property development recorded an after-tax profit of HKD 2.035 billion in 2023, primarily from the initial profit recognition of "The Grand Marini" (LOHAS Park Phase 11) and residual profits from multiple completed projects[66] - As of December 31, 2023, sales rates for various projects were as follows: "The Southside" (Island South Phase 1 & 2) at 79% and 89%, "The Grand Marini I, II, III" (LOHAS Park Phase 11) at 79%, 24%, and 26%, "Marini" (Island South Phase 4A) at 12%, "The Pavilia Farm" (Ho Man Tin Station Phase 2) at 17%, 98%, and 85%, and "YOHO WEST" (Tin Wing Station Phase 1) at 78%[66] - The Tung Chung East Station Phase 1 project received no bids in November 2023, with plans to re-tender within the next 12 months, while the Siu Ho Wan project aims for the first residents to move in by 2030[66] - The Tung Chung Line Extension project, signed in February 2023, is expected to be completed by 2029, with the Airport Railway Turnback Tunnel Extension set to begin construction in 2025 and complete by 2032[68] - The Tuen Mun South Extension project, signed in September 2023, is expected to be completed by 2030[69] - The Kwu Tung Station project, signed in September 2023, is expected to be completed by 2027, becoming the 100th station in the MTR network[70] - The Siu Ho Wan Station construction began in December 2023, with a target completion date of 2030[71] - The company is utilizing the "Rail plus Property" development model to fund major projects, leveraging financial contributions from property development and internal resources[169][170][171] - The company has revised the land premium assessment benchmark for future projects, considering the market value of development sites inclusive of the railway's presence, minus agreed deductions[168] - The company is advancing multiple strategic railway projects under the "Railway Development Strategy 2014" and the "Hong Kong Major Transport Infrastructure Development Blueprint"[165][167] - The company faces challenges in labor supply and technical difficulties, including the need to conduct engineering works during non-operating hours at night[165] - The company is advancing multiple key projects under the "Railway Development Strategy 2014," including the North Link Main Line, which is targeted to commence construction in 2025 and complete by 2034[173] - The company is exploring different financing models, including the "Rail plus Property" development model, to ensure commercial returns on investments for the North Link and Hung Shui Kiu Station projects[173] - The company's Hong Kong property development business recorded a post-tax profit of HKD 2.035 billion in 2023, primarily from the initial profit recognition of "The Coast Line" (Phase 11 of "LOHAS Park") and residual profits from multiple completed projects[156] - The company's property management business in Hong Kong generated revenue of HKD 284 million, an increase of 11.8% compared to 2022, managing over 121,000 residential units and more than 920,000 square meters of office and commercial space as of December 31, 2023[154] - The new shopping mall "THE SOUTHSIDE" in Wong Chuk Hang commenced its first phase of trial operation in December 2023, with approximately 30 tenants opening in one of the five retail floors, accounting for about 20% of the total floor area, and recorded a fair value gain of HKD 1.36 billion in 2023[153] - As of December 31, 2023, "The Southside" (Phase 1 of "South Island Line") and "The Southside II" (Phase 2 of "South Island Line") had sold 79% and 89% of their units respectively, while "The Coast Line I," "The Coast Line II," and "The Coast Line III" (Phase 11 of "LOHAS Park") had sold 79%, 24%, and 26% of their units respectively[157] - The company's investment property portfolio in Hong Kong had a market value of HKD 39.73 billion as of 2023, with rental net income of HKD 3.609 billion[153] - The YOHO Hub Phase 1 (Yuen Long Station) has sold 43% of its units as of December 31, 2023[158] - The YOHO Hub Phase 2 has obtained pre-sale consent[158] - The Pavilia Farm I and II (Kam Sheung Road Station Phase 1) have sold 99% and 82% of their units respectively as of December 31, 2023[158] - The Pavilia Farm III has obtained pre-sale consent[158] - The company has 14 residential property projects under development, expected to provide approximately 14,000 units for sale in the short to medium term[160] - The Siu Ho Wan project, adjacent to the future Siu Ho Wan Station, will be developed in phases, providing approximately 10,720 private residential units, with the first batch of residents expected to move