Skip to Content
Morningstar

MTR Corp Ltd 00066

Morningstar Rating
Unlock
Stock XHKG Rating as of
HKD 26.55 +0.45 (1.72%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

MTR's Rail Passenger and Retail Recovery Continues to Support Revenue Growth

Xinfu Lee, Kathy Chan

Established in 1975, MTR is the sole rail operator in Hong Kong following the rail merger with Kowloon-Canton Railway in 2007. It operates a rail-based transport system, comprising domestic rail services, light rail, Airport Express, and cross-boundary and a high-speed rail service to the mainland. With an average weekday patronage of over 5 million passengers and growing, the company is one of the world’s busiest rail operators. MTR differentiates itself from traditional rail operators with its "rail-plus-property" funding model. It is given the rights for property development along the rail corridor as a government incentive to induce construction. The high-quality rail network and unusual business model of rail plus property are MTR's key strengths, underpinning our narrow economic moat rating.

Read Full Report

Price vs Fair Value

View History
00066 is trading at a 31% discount.
Price
HKD 26.55
Fair Value
HKD 62.40
Uncertainty
Low
1-Star Price
HKD 16.19
5-Star Price
HKD 18.50
Economic Moat
Zkrpft
Capital Allocation
Qnpkqfzh

Bulls Say, Bears Say

Bulls

New growth opportunities arise as the Hong Kong government continues to support further expansion of Hong Kong's railway network and accelerated long term development, including the "Three Railways" proposal.

Bears

Being 75%-owned by the Hong Kong government, MTR could be influenced by government decisions. A fundamental shift in the regulatory privileges toward the firm’s "rail plus property" business model could weigh on returns.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if 00066 is a good fit for your portfolio.
Get 7 Days Free

Trading Information

Previous Close Price
HKD 26.10
Day Range
HKD 26.20–26.75
52-Week Range
HKD 23.05–40.20
Bid/Ask
HKD 26.50 / HKD 26.55
Market Cap
HKD 165.07 Bil
Volume/Avg
5.3 Mil / 4.2 Mil

Key Statistics

Price/Earnings (Normalized)
25.69
Price/Sales
2.89
Dividend Yield (Trailing)
4.93%
Dividend Yield (Forward)
4.93%
Total Yield
4.93%

Company Profile

MTR constructs and operates Hong Kong's rail network, giving it a monopoly position. In addition to rail operation, the firm makes recurring income from commercial business within the stations. This includes rental of retail outlets and advertisement within the station and investment properties in shopping malls above stations. Residential real estate development forms part of MTR's return for the rail operation. In a normalized environment, average operating profit is approximately 20% in rail operation, 60% in station commercial and property leasing business, and 20% in property development. The Hong Kong government owns 75% of MTR.
Sector
Industrials
Industry
Railroads
Stock Style Box
Large Core
Total Number of Employees
33,405
Website
https://www.mtr.com.hk

Competitors

Valuation

View More
Metric
00066
01972
H78
Price/Earnings (Normalized)
 25.6912.599.78
Price/Book Value
 0.920.340.22
Price/Sales
 2.896.603.90
Price/Cash Flow
 14.5814.5217.02
Price/Earnings
00066
01972
H78

Financial Strength

Metric
00066
01972
H78
Quick Ratio
 0.520.480.61
Current Ratio
 0.581.031.70
Interest Coverage
 5.687.92−1.16
Quick Ratio
00066
01972
H78

Profitability

Metric
00066
01972
H78
Return on Assets (Normalized)
 2.09%2.11%1.87%
Return on Equity (Normalized)
 3.75%2.54%2.39%
Return on Invested Capital (Normalized)
 3.43%2.33%2.39%
Return on Assets
00066
01972
H78
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Railroads Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
UNP
Union Pacific CorpJyxvjxkpRgrlb$146.6 Bil
CNI
Canadian National Railway CoClcwrwjmYbjd$78.7 Bil
CP
Canadian Pacific Kansas City LtdZxtbbwqmxDdxsj$74.4 Bil
CSX
CSX CorpZfsyzxfhTglcr$66.2 Bil
NSC
Norfolk Southern CorpSzghybmmThxsy$53.2 Bil
WAB
Westinghouse Air Brake Technologies Corp—Bslhl$28.6 Bil
CJPRF
Central Japan Railway Co—Nngl$23.3 Bil
CJPRY
Central Japan Railway Co ADR—Fffx$23.3 Bil
EJPRY
East Japan Railway Co ADR—Kdjkf$22.3 Bil
EJPRF
East Japan Railway Co—Nfk$22.3 Bil

Sponsor Center