＜Research＞G Sachs Lowers MTR CORPORATION (00066.HK) TP to $31.1, Rates Buy

　　Goldman Sachs issued a report on MTR CORPORATION (00066.HK) -0.800 (-3.089%) Short selling $45.11M; Ratio 30.641% after the company held a conference call this month.

　　MTR disclosed that the domestic passenger volume from April to May rose 2% YoY and recovered to 95% of the 2018 level. Among them, Hong Kong's passenger outbound travels consistently exceeded the pre-pandemic level by 13% in May and June, which is greater than the 8% in 1Q24, while the number of XRL passengers was 112% of the pre-Covid level in May. The number of cross-boundary and Airport Express passengers was 82% and 74% of the pre-pandemic level respectively.

　　Related NewsM Stanley Forecasts MTR CORPORATION 1H24 Underlying Profit to Lift 20% YoY, Notes Attractive Valuation

　　Sales at MTR's shopping centres and station shops were broadly in line with Hong Kong's retail sales trend of a 6% drop in the first five months and a return to the pre-pandemic level of 77%.

　　In terms of property development revenue, MTR expected to book 5 projects during the year, including LOHAS Park Phase 11, Wong Chuk Hang Station Phases 3 and 4, and Ho Man Tin Station Phases 1 and 2, with most of them to be booked in 2H24. The broker expected MTR to make a development property profit of $2.1 billion for 1H24 and $7.1 billion for the full year.

　　Goldman forecasted MTR's interim core net profit to hike 52% YoY to $4.8 billion, comprising $2.5 billion from recurring business, $2.1 billion from development property, and $0.3 billion of overseas railway operations. The broker estimated MTR's interim dividend to be flat YoY at $0.42 per share.

　　Related NewsJefferies Cuts MTR CORPORATION (00066.HK) TP to $19, Rating Underperform

　　Based on the latest patronage and property development booking schedule, Goldman adjusted its earnings per share forecast on MTR for 2024-2026 and lowered its target price from $32.5 to $31.1, while retaining a Buy rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-12 16:25.)

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