23,000 projects under construction of the MTR railway for sale net profit of 168.0 billion liters 64%
MTR Corporation (00066), as one of the major residential supply sources in Hong Kong, plans to launch four tenders for property development projects this year, providing a total of approximately 4,250 residential units; the existing potential supply capacity exceeds 23,000, and Siu Ho Wan, Lantau Island The depot project will also provide 14,000 units in the future.
Property development profit 飙2.6 times
As of the end of last year, the basic business profit of the MTR Corporation was 10.515 billion yuan, an increase of 11.3% year-on-year. Among them, recurring business profits fell by 3.8% to 8.58 billion yuan; property development profit 飙 2.65 times to 1.935 billion yuan, Hong Kong project and Shenzhen project Tian Song each contributed half. Taking into account the revaluation of investment properties, the net profit was 16.829 billion yuan, up 64.1% year-on-year. The final dividend was 87 cents per share, an increase of 6.1%.
For the recurring business, profits fell by 3.8%. Chief Financial Officer Xu Lianghua said that due to last year’s fare adjustment mechanism, the MTR failed to increase fares last year, and the new railway line brought additional costs and interest expenses.
Ms. Tang Zhihui, Director of Property Management at MTR, pointed out that the projects launched this year were mainly based on urban areas, including the third phase of Wong Chuk Hang Station, involving 1.5 million square feet of residential buildings and 500,000 square meters of shopping malls. In the second phase of Ho Man Tin Station, 900 people are provided; in Phase I of Tseung Kwan O, Lohas City, there are 1,650 vehicles on board; and the reconstruction of the Yau Tong Ventilation Building involves 500 persons.
Discuss Siu Ho Wan project with city regulations
In March of last year, the MTR announced that it intends to launch a bid for seven projects in 12 months, involving 8,000 people, but only about 3,050 of them will eventually be launched. Talking about supply far below expectations, Deng Zhihui explained that due to abundant supply last year, the project will be launched this year depending on market conditions. In the past four years, the MTR Corporation has approved 12 projects and will provide more than 18,000 units after the completion of the next six years. According to MTR sources, together with the 12,000 units under construction on the Kowloon-Canton Railway Corporation, a total of more than 30,000 new buildings are under construction, deducting about 7,000 pre-sales and potential supply of 23,000. This year, about 4,200 gangs are launched depending on market conditions, compared to 3,000 last year. And the Phase 5 of the Lohas Lohas Park, which will be pre-sold this week, is one of the indicators of market conditions. If the response is satisfactory, it will continue. Launch project bidding.
MTR sources pointed out that the Siu Ho Wan depot development project involving a supply of 14,000 people will be gazetted after discussions with the Town Planning Board today, followed by public consultation (60 days) and public comment (9 months). Depending on technical factors, it can be divided into 4 to 5 phases or 8 to 9 phases of development. There will be a clearer development plan after 11 months.