by winston » Tue Mar 10, 2009 9:07 pm
HK's MTRC 2008 underlying net profit down 4.5 pct
HONG KONG, March 10 (Reuters) - Hong Kong's subway operator and property developer MTR Corp (0066.HK) posted a 4.5 percent drop in underlying profit attributable to equity shareholders in 2008 as the global economic downturn weighed on housing demand.
MTRC, which runs the rail link between Guangzhou and Hong Kong and other transport operations in various cities in China, earned HK$8.18 billion in the year ended December, excluding investment property revaluation and related deferred tax. That compares with 2007 net profit of HK$8.6 billion or HK$1.54 per share.
Including investment property revaluation, net profit in 2008 stood at HK$8.28 billion, down sharply from HK$15.2 billion in the year earlier, company figures show.
The reported earnings per share were HK$1.45 before investment property revaluation and HK$1.47 after revaluation.
MTRC said profit on property development fell 43.8 percent to HK$4.67 billion in 2008 due to significant development profits booked in 2007.
The company said it hopes five new local rail projects on the drawing board and the Kowloon Southern Link project, when completed, would represent the most significant network expansion in its history and become a key contributor to its future growth.
"We are taking a cautious approach to 2009. Our rail business is by nature defensive. It is, however, sensitive to the level of unemployment," said chief executive officer C.K. Chow in the statement.
For full statement: here
Shares in MTR fell 37 percent last year, outperforming the 48 percent slide in Hong Kong's benchmark Hang Seng Index.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"