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MTR Corporation Limited (HK:0066)
:0066
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MTR (0066) AI Stock Analysis

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HK:0066

MTR

(0066)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
HK$35.00
▲(7.76% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily held back by weak cash-flow quality and persistently negative free cash flow alongside rising leverage, despite strong reported profitability. Offsetting that, technicals are moderately constructive (price above key moving averages with positive MACD), and valuation is supportive with a reasonable P/E and an attractive dividend yield.
Positive Factors
Integrated rail–property business model
MTR's dual rail-plus-property model creates durable, diversified cash streams: fare revenue plus property development, rentals and station retail. That structural linkage captures value uplift from new lines, smoothing earnings across cycles and aligning incentives for long-term urban development.
Negative Factors
Persistent negative free cash flow
Negative free cash flow across multiple years signals that accounting profits are not converting into surplus cash, constraining internal funding for capex, dividends or debt paydown. Over months this raises reliance on external financing and heightens liquidity and refinancing risk for capital projects.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated rail–property business model
MTR's dual rail-plus-property model creates durable, diversified cash streams: fare revenue plus property development, rentals and station retail. That structural linkage captures value uplift from new lines, smoothing earnings across cycles and aligning incentives for long-term urban development.
Read all positive factors

MTR (0066) vs. iShares MSCI Hong Kong ETF (EWH)

MTR Business Overview & Revenue Model

Company Description
MTR Corporation Limited, established in 1975 and based in Kowloon Bay, Hong Kong, is a diversified global enterprise that designs, builds, operates, maintains, and invests in railway systems. Its extensive geographical reach includes operations in...
How the Company Makes Money
MTR makes money primarily through a mix of (1) transport operations and (2) property and commercial businesses. 1) Transport operations (fare and service revenue) - Passenger fares: Revenue from riders using MTR’s rail services (and related trans...

MTR Financial Statement Overview

Summary
Reported profitability is strong (income statement score 72) and the equity base is solid (balance sheet score 63), but cash conversion is a major weakness (cash flow score 38) with persistently negative free cash flow and only modest operating cash flow coverage of earnings. Rising leverage and a recent revenue decline add risk, pulling the combined financial performance score down.
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue54.34B55.47B60.01B56.98B47.81B47.20B
Gross Profit9.88B13.41B13.71B9.60B2.47B3.03B
EBITDA8.17B14.82B27.06B17.32B17.90B17.80B
Net Income22.80B14.04B15.77B7.78B9.83B9.55B
Balance Sheet
Total Assets492.34B398.94B367.50B346.43B327.08B292.08B
Cash, Cash Equivalents and Short-Term Investments114.00B44.24B27.89B22.38B16.37B21.20B
Total Debt203.82B122.43B77.68B59.63B47.99B43.90B
Total Liabilities287.38B206.04B181.37B167.57B147.17B112.05B
Stockholders Equity204.27B192.22B185.63B178.34B179.29B179.71B
Cash Flow
Free Cash Flow-9.11B-7.72B-925.00M-1.14B-12.53B-1.17B
Operating Cash Flow13.74B11.87B18.49B11.20B6.76B7.47B
Investing Cash Flow-24.85B-16.57B-20.27B-7.72B-1.99B5.97B
Financing Cash Flow67.82B20.91B8.50B1.87B-4.57B-14.53B

MTR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$24.20B14.805.27%4.27%
74
Outperform
HK$130.52M7.2652.46%12.50%5.09%113.92%
71
Outperform
HK$4.79B19.931.37%8.98%0.54%-12.72%
69
Neutral
HK$1.32B5.3910.95%7.27%10.86%90.59%
64
Neutral
HK$206.04B9.1411.50%3.90%-6.48%30.99%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
HK$55.35B14.767.46%6.23%6.47%3.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0066
MTR
33.56
7.96
31.08%
HK:3969
China Railway Signal & Communication
3.14
-0.12
-3.62%
HK:0525
Guangshen Railway Company
2.43
-0.02
-0.94%
HK:0062
Transport International Holdings Limited
8.91
-1.20
-11.83%
HK:0306
Kwoon Chung Bus Holdings Limited
2.75
0.49
21.74%
HK:0077
AMS Public Transport Holdings Limited
0.48
0.08
20.30%

MTR Corporate Events

MTR sets August board meeting to review interim results and dividend
Jul 23, 2026
MTR Corporation Limited has scheduled a board meeting for 13 August 2026 to approve the unaudited financial results for the six months ended 30 June 2026 and to consider declaring an interim dividend. The timing of this meeting signals the company...
MTR updates board and executive roles ahead of new governance term
Jul 20, 2026
MTR Corporation Limited has announced an updated list of members of its Board and Executive Directorate, detailing their roles as non-executive, independent non-executive and executive directors as well as committee responsibilities. The board inc...
MTR Shareholders Approve All AGM Resolutions and Refresh Board Committees
May 27, 2026
MTR Corporation reported that all resolutions at its 2026 annual general meeting were passed by substantial majorities, including approval of the 2025 audited financial statements, declaration of a final dividend, re-election and election of sever...
MTR Updates Board and Executive Roles in Governance Restructuring
May 27, 2026
MTR Corporation has announced an updated list of its Board members and Executive Directorate, detailing the roles of non-executive, independent non-executive and executive directors across key governance committees. The structure underscores stron...
MTR reshapes government-linked board representation with new alternate director
May 11, 2026
MTR Corporation has announced a change in its board representation linked to the Hong Kong government’s transport bureau, reflecting routine rotation within its non-executive oversight structure. The shift underscores the continued influence...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2026