Zhi Tong Cai Jing·2026-03-16 06:15Core Viewpoint - UBS reports that MTR Corporation (00066) announced its full-year results for the year ending December 31, with a basic net profit of HKD 16.7 billion, a year-on-year decrease of 4%, which aligns with the bank's expectations. However, recurring EBIT fell by 13% year-on-year, which was below the bank's forecast. The target price for MTR is set at HKD 24, with a "Sell" rating assigned [1]. Group 1: Financial Performance - MTR's basic net profit for the year was HKD 16.7 billion, down 4% year-on-year [1]. - Recurring EBIT decreased by 13% year-on-year, falling short of UBS's predictions [1]. Group 2: Project Developments - MTR is currently in the planning stages for the South Island Line (West Section) and the Pak Shek Kok Station, along with the second phase of the Northern Link [1]. - UBS anticipates that the capital expenditures for these three new projects will be disclosed in the second half of this year, predicting a negative market reaction to the lower-than-expected recurring profits [1]. Group 3: Land Tender Plans - MTR plans to launch tenders for the second phase of the Kam Sheung Road Station and the second phase of the Tuen Mun District 16 Station within the next 12 months [1]. - UBS notes that despite a recent market recovery, the upward potential for land prices is limited, especially for the Tuen Mun site, which has a large development scale of 5,510 units [1]. - The expected land price for the first phase was HKD 4,314 per square foot, including one-time payments and profit sharing, while the final land price should remain below HKD 5,621 per square foot, which is the amount for land premium [1]. Group 4: Capital Expenditure Guidance - MTR has guided a maintenance capital expenditure of HKD 41.6 billion for the next three years, which remains relatively unchanged on a half-yearly comparison [1].