Stock Analysis
MTR (HKG:66) Full Year 2024 Results
Key Financial Results
- Revenue: HK$60.0b (up 5.3% from FY 2023).
- Net income: HK$15.8b (up 103% from FY 2023).
- Profit margin: 26% (up from 14% in FY 2023). The increase in margin was primarily driven by lower expenses.
- EPS: HK$2.54 (up from HK$1.26 in FY 2023).
All figures shown in the chart above are for the trailing 12 month (TTM) period
MTR Revenues and Earnings Beat Expectations
Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) also surpassed analyst estimates by 7.0%.
The primary driver behind last 12 months revenue was the Mainland of China and International Affiliates - Mainland of China and International Railway, Property Rental and Management Businesses segment contributing a total revenue of HK$25.5b (42% of total revenue). Notably, cost of sales worth HK$40.3b amounted to 67% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Depreciation & Amortisation (D&A) costs, amounting to HK$6.14b (155% of total expenses). Explore how 66's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Transportation industry in Asia.
Performance of the market in Hong Kong.
The company's shares are up 3.9% from a week ago.
Risk Analysis
We don't want to rain on the parade too much, but we did also find 2 warning signs for MTR (1 is potentially serious!) that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About SEHK:66
MTR
Designs, constructs, operates, maintains, and invests in railways in Hong Kong, Australia, Mainland China, Macao, Sweden, and the United Kingdom.