Hong Kong’s MTR Corp net profit drops 21.1pc to HK$10.2b on lower property income

Seven property projects would provide 8,000 units, accounting for 42 per cent of the Hong Kong government’s target to provide 19,000 private flats in the year to March 2018

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Lincoln Leong Kwok-kuen, chief executive officer of MTR Corp, sees another slow year for property development profits in Hong Kong. Photo: Jonathan Wong

Published: 5:38pm, 7 Mar 2017Updated: 11:00pm, 7 Mar 2017

MTR Corp plans to offer seven property projects for tender over the next 12 months, believed to be the largest number planned in a single year by Hong Kong’s rail operator, after it announced a 21.1 per cent fall in net profit last year on lower property development income.

The seven projects would provide a total of 8,000 units, accounting for 42 per cent of the Hong Kong government’s target to provide 19,000 private flats in the year to March 2018.

The move comes after the company announced that full year net profit plunged to HK$10.25 billion (US$1.32 billion) after its earnings contribution from Hong Kong property development slumped.

The company’s profit from transportation edged up 3.2 per cent to HK$2.57 billion.

“I believe seven projects put up for sale would be a record for MTR Corp,” said Kenny Tang Sing-hing, chief executive of Junyang Securities.

It would break MTR Corp’s previous record of four property tenders in 2015. The tender number dropped to two in 2016.

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