Movement Alert|MTR CORPORATION Rises 3.03% in Regular Trading, Bounce After Recent Government Settlement Fall

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Yesterday

On October 9, MTR CORPORATION rose 3.03% in regular trading to HK$31.94 with turnover of HK$63.67 million. The stock rebounded following a recent decline triggered by a HK$2.25 billion settlement with the Hong Kong government over the High Speed Rail and Shatin-Central Link projects.

The settlement, announced on October 2, resolved long-standing disputes with no further payment required for the Shatin-Central Link. Analysts estimate the one-time charge represents about 1% of net asset value and could reduce full-year net profit by around 11%, with potential implications for future dividends.

The company has a stable share capital of 6,224,823,171 shares and recently accepted a HK$10.5 billion land premium for Tuen Mun Area 16 station, which will be fully offset.

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