Morgan Stanley expects Hong Kong rail to increase its basic profit by 20% annually, attracting valuation

Jinshi data news on July 12, Morgan Stanley published a research report, saying that it has a positive outlook on MTR (00066.HK) first-half performance, expecting a rise in earnings per share and stable dividends, which will enable MTR to outperform most local developers. It also pointed out that its valuation is attractive, giving it a buy rating with a target price of 30 Hong Kong dollars. The bank currently predicts that MTR’s first-half basic earnings will rise by 20% year-on-year to reach 3.8 billion Hong Kong dollars, while recurring business profits are expected to rise by 18% to 2.9 billion Hong Kong dollars, with a mid-term dividend expected to remain stable at 42 Hong Kong cents per share. MTR is expected to complete four property development projects within the year, involving 4,500 residential units, mainly concentrated in the second half of the year. Morgan Stanley pointed out that since the government withdrew the cooling measures at the end of February, MTR projects have sold more than 2,500 units, and it is expected that the prospects for property development profits will improve. Benefiting from strong inventory sales, it is currently expected that MTR’s first-half property development business profits will rise by 28% year-on-year to 900 million Hong Kong dollars.