Lyon: It is expected that the final dividend of MTR CORPORATION (00066) will meet expectations with a target price of 27 Hong Kong dollars.

Lyon released a research report stating that MTR CORPORATION (00066) announced its full-year performance for the year ending in December last year. The recurring profit in the second half of last year (excluding property development) decreased by 29% year-on-year to HK$2.3 billion, but exceeded the bank's previous forecast of non-operating project profit of HK$1.7 billion. The final dividend remained unchanged at HK$0.89 per share year-on-year, in line with expectations. The target price for the stock is HK$27 with a rating of "hold". Lyon pointed out that MTR CORPORATION's total capital expenditure from 2026 to 2028 is HK$82.6 billion, which means an average annual capital expenditure of HK$27.5 billion, slightly lower than the actual EBITDA in 2025 including property development. The company also expects to tender for the second phase of the Kam Sheung Road Station and the second phase of the Tuen Mun Area 16A Station projects in the next 12 months.