MTR: Hong Kong Railway and Investment Properties Businesses Gradually Recover on Border Reopening

We maintain our fair value estimate of HKD 42 per share after attending MTR’s preblackout meeting, which showed that its latest operating statistics are in line with our expectations. Our long-term thesis that MTR should benefit from a market share gain from other modes of public transportation as it further expands its railway network is unchanged, and we continue to see shares as undervalued, with a 14% discount to our fair value estimate, as of the July 4 closing price.