A robust property market and strong passenger numbers doubled earnings at MTR Corp for the first six months of the year and further improvement can be expected this year, the company said yesterday.
Mainstay rail services returned to profitability during the period, while all other business units - including property sales and rentals, advertising and telecommunications - posted solid growth.
The adoption of new accounting standards that require Hong Kong companies to record property valuation changes in their profit-loss accounts also buoyed corporate performance, enabling the MTR to book $1.01 billion in property appreciation directly into earnings.
Interim net profits jumped 122.2 per cent year on year to $2.6 billion, reflecting a thriving consumer economy, lucrative property sales and higher rents from prosperous retail shops in and above MTR stations.
Excluding the property valuation surplus, net profits for the first half were 50.8 per cent higher year on year at $1.76 billion, comfortably exceeding JP Morgan's estimate of $1.4 billion and Credit Suisse First Boston's forecast of $1.6 billion.
Earnings per share, including the surplus, were 48 cents. Dividend remained the same as last year at 14 cents per share.
A Thomson First Call poll showed a full-year profit consensus of $4.87 billion, although some analysts said they were upgrading their forecast.
