# MTR (0066.HK)

Canonical: https://gigainvestors.com/s/0066.HK

Analysis as of: 2026-10-16T07:34:31.158Z. Financial observations: FY2000–FY2025.

Listing currency: HKD. Reporting currency: HKD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 31.86 per share; close as of 2026-10-15.

Estimated value: low HKD 31.30 per share, central HKD 33.11 per share, high HKD 35.52 per share. Buy at or below the central value HKD 33.11 per share. Valuation as of 2026-10-16T07:34:31.158Z; scenarios are not confidence intervals.

Expected annual return: 10.7% at the stated quote. About 10.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.65×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.26×

- FY2017: 0.26×

- FY2018: 0.26×

- FY2019: 0.14×

- FY2020: -0.01×

- FY2021: 0.05×

- FY2022: 0.04×

- FY2023: 0.10×

- FY2024: 0.20×

- FY2025: 0.15×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.8%

- ROIC, second-lowest year: 0.7%

- Typical minus recent gross margin: -1.9 pp

- Typical gross margin (annual median): 20.9%

- Recent gross margin (lower of latest and 3-year median): 22.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 20.0%

- ROIC including acquisitions, ten-year median: 4.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.1%

- FY2017: 5.8%

- FY2018: 5.6%

- FY2019: 3.0%

- FY2020: -0.2%

- FY2021: 1.0%

- FY2022: 0.7%

- FY2023: 2.3%

- FY2024: 4.1%

- FY2025: 2.6%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.45×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: HKD 26B

- Net income, five-year total: HKD 57B

- Return on incremental invested capital: -5.6%

- Working capital / revenue, annual change: 3.9 pp

- Working capital / revenue, change between three-year averages: 27.2 pp

- Working capital / revenue, final three-year average: 10.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.98×

- FY2022: -0.24×

- FY2023: 0.98×

- FY2024: 0.66×

- FY2025: 0.04×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 5.6% vs 2.6%

- Per-share earnings: 1.74 to 2.26 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.6%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: HKD -37B

- Cumulative retained earnings: HKD 31B

- Diluted shares, 10-year annual growth: 0.6%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.3%

- Per-share value change: HKD 0.52

- Per-share value, starting three-year median: HKD 1.74

- Per-share value, ending three-year median: HKD 2.26

- Buybacks concentrated in cheaper years (correlation): 0.70

- Average buyback yield: 0.1%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: HKD 7.6B

- Cumulative net income, 10 years: HKD 107B

- ROIC, first three-year median: 5.6%

- ROIC, last three-year median: 2.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: HKD 1.74

- FY2017: HKD 1.39

- FY2018: HKD 2.62

- FY2019: HKD 1.94

- FY2020: HKD -0.78

- FY2021: HKD 1.54

- FY2022: HKD 1.59

- FY2023: HKD 1.25

- FY2024: HKD 2.54

- FY2025: HKD 2.26

### accounting: pass

- Sloan accruals: 0.5%

- Receivables to sales index (DSRI): 0.93×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.85×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.7%

- FY2017: -1.1%

- FY2018: 1.8%

- FY2019: -1.8%

- FY2020: -1.9%

- FY2021: 0.7%

- FY2022: 0.9%

- FY2023: -1.0%

- FY2024: -0.7%

- FY2025: 0.5%

## Holders

## Price story

Down 25% since Oct 2021 · sales -7.6%

Story as of 2026-10-16T10:00:00.956Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.2% a year for ten years

### Sales · FY2024–2025

sales -7.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: HKD 45B 

- FY2017: HKD 55B 

- FY2018: HKD 54B 

- FY2019: HKD 55B 

- FY2020: HKD 43B 

- FY2021: HKD 47B 

- FY2022: HKD 48B 

- FY2023: HKD 57B 

- FY2024: HKD 60B 

- FY2025: HKD 55B 

### Gross margin · FY2025

gross margin 24.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 41.2% 

- FY2017: 38.3% 

- FY2018: 37.5% 

- FY2019: 19.0% 

- FY2020: 0.2% 

- FY2021: 6.4% 

- FY2022: 5.2% 

- FY2023: 16.9% 

- FY2024: 22.8% 

- FY2025: 24.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in railroads; annual sales are HKD 55.5 billion.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2025-12-31 (filed 2026-10-16T07:34:31.158Z); FY2025: revenue 55465000000; grossProfit 13410000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0066.HK: MTR Corporation Limited engages in railway design, construction, operation, maintenance, and investment in Hong Kong, Australia, Mainland China, Macao, Sweden, and the United Kingdom. It operates through Hong Kong Transport Operations; Hong Kong Station Commercial Businesses; Hong Kong Property Rental and Management Businesses; Hong Kong Property Development; Mainland China and International Railway, Property Rental and Management Businesses; Mainland China Property Development; and Other Businesses segments. The company offers passenger operation and related services on the domestic mass transit railway system, the Airport Express, cross-boundary railway connections, light rail and bus feeder with railway system, and intercity railway transport. It is also involved in railway project management and property development businesses; station commercial business, including leasing of station retail space, leasing of advertising space inside trains and stations, and enabling of telecommunication services on the railway system; property business comprising property development, investment, management, and leasing management of shopping malls and offices; and investment in related new technologies. In addition, the company provides railway management, engineering, and technology training services. MTR Corporation Limited was founded in 1975 and is headquartered in Kowloon Bay, Hong Kong.

### Why customers stay

Margins ranged from 16.9% to 24.2% during 2023–25; it earns 2.8% on its capital.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2023-12-31 (filed 2026-10-16T07:34:31.158Z); FY2023: grossProfit / revenue = 16.9%.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2024-12-31 (filed 2026-10-16T07:34:31.158Z); FY2024: grossProfit / revenue = 22.8%.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2025-12-31 (filed 2026-10-16T07:34:31.158Z); FY2025: grossProfit / revenue = 24.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:31.158Z); 10-year return on capital observations [[2016,0.05052904700849975],[2017,0.05834879803455199],[2018,0.05568557867434044],[2019,0.02998974691229267],[2020,-0.001539178932205581],[2021,0.009847117619714072],[2022,0.007446555844571071],[2023,0.022626536430775473],[2024,0.041105712770925756],[2025,0.02562780745964598]]; median 0.027808777185969323. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back HKD 113 million of shares.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2016-12-31 (filed 2026-10-16T07:34:31.158Z); FY2016: growth capex 7223000000; upkeep 4127000000; owner earnings 10254000000. Growth capex / owner earnings = 0.7044080358884338.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2017-12-31 (filed 2026-10-16T07:34:31.158Z); FY2017: growth capex 2955000000; upkeep 4855000000; owner earnings 16829000000. Growth capex / owner earnings = 0.1755897557787153.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2018-12-31 (filed 2026-10-16T07:34:31.158Z); FY2018: growth capex 0; upkeep 6512000000; owner earnings 14481000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2019-12-31 (filed 2026-10-16T07:34:31.158Z); FY2019: growth capex 1364274546.6953487; upkeep 7658725453.304651; owner earnings 9262074546.695349. Growth capex / owner earnings = 0.147296865277565.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2021-12-31 (filed 2026-10-16T07:34:31.158Z); FY2021: growth capex 3212000000; upkeep 5430000000; owner earnings 9346800000. Growth capex / owner earnings = 0.3436470235802628.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2023-12-31 (filed 2026-10-16T07:34:31.158Z); FY2023: growth capex 6578000000; upkeep 5755000000; cash acquisitions 52000000; owner earnings 7640000000. Growth capex plus acquisitions / owner earnings = 0.8678010471204188.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2024-12-31 (filed 2026-10-16T07:34:31.158Z); FY2024: growth capex 8104249081.445; upkeep 11311750918.555; cash acquisitions 73000000; owner earnings 10391049081.445. Growth capex plus acquisitions / owner earnings = 0.7869512517313464.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2025-12-31 (filed 2026-10-16T07:34:31.158Z); FY2025: growth capex 0; upkeep 19594000000; cash acquisitions 0; owner earnings 573800000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:31.158Z); Dividend observations: [[2016,18508000000],[2017,15358000000],[2018,1281000000],[2019,6649000000],[2020,6808000000],[2021,7165000000],[2022,8562000000],[2023,7595000000],[2024,7946000000],[2025,8155000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/0066.HK.json#2025-12-31 (filed 2026-10-16T07:34:31.158Z); FY2025: cash repurchases 113000000 HKD.

### Are managers owners

Insiders own 74.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0066.HK SharesStats.PercentInsiders = 74.51 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 0.2% yearly over ten years; actual growth was 17.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:31.158Z); Ten-year compound average after fade. Initial solved rate -0.015562195622709052. Price 31.86; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.018443500141039827 → FY2025 0.0921772112624705. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 42.95 per share

- 2016-11: HKD 38.80 per share

- 2016-12: HKD 37.70 per share

- 2017-01: HKD 39.60 per share

- 2017-02: HKD 41.05 per share

- 2017-03: HKD 43.65 per share

- 2017-04: HKD 44.80 per share

- 2017-05: HKD 44.40 per share

- 2017-06: HKD 43.95 per share

- 2017-07: HKD 45.15 per share

- 2017-08: HKD 45.75 per share

- 2017-09: HKD 45.60 per share

- 2017-10: HKD 45.20 per share

- 2017-11: HKD 45.95 per share

- 2017-12: HKD 45.80 per share

- 2018-01: HKD 44.80 per share

- 2018-02: HKD 41.50 per share

- 2018-03: HKD 42.20 per share

- 2018-04: HKD 44.25 per share

- 2018-05: HKD 44.15 per share

- 2018-06: HKD 43.40 per share

- 2018-07: HKD 44.00 per share

- 2018-08: HKD 40.45 per share

- 2018-09: HKD 41.20 per share

- 2018-10: HKD 38.00 per share

- 2018-11: HKD 40.60 per share

- 2018-12: HKD 41.20 per share

- 2019-01: HKD 43.80 per share

- 2019-02: HKD 45.10 per share

- 2019-03: HKD 48.60 per share

- 2019-04: HKD 46.70 per share

- 2019-05: HKD 47.95 per share

- 2019-06: HKD 52.60 per share

- 2019-07: HKD 51.55 per share

- 2019-08: HKD 45.40 per share

- 2019-09: HKD 44.00 per share

- 2019-10: HKD 45.00 per share

- 2019-11: HKD 43.90 per share

- 2019-12: HKD 46.05 per share

- 2020-01: HKD 43.90 per share

- 2020-02: HKD 43.85 per share

- 2020-03: HKD 40.05 per share

- 2020-04: HKD 43.05 per share

- 2020-05: HKD 37.15 per share

- 2020-06: HKD 40.15 per share

- 2020-07: HKD 38.50 per share

- 2020-08: HKD 40.35 per share

- 2020-09: HKD 38.25 per share

- 2020-10: HKD 38.35 per share

- 2020-11: HKD 42.05 per share

- 2020-12: HKD 43.35 per share

- 2021-01: HKD 45.15 per share

- 2021-02: HKD 46.55 per share

- 2021-03: HKD 44.05 per share

- 2021-04: HKD 43.30 per share

- 2021-05: HKD 43.20 per share

- 2021-06: HKD 43.25 per share

- 2021-07: HKD 46.05 per share

- 2021-08: HKD 43.80 per share

- 2021-09: HKD 42.00 per share

- 2021-10: HKD 42.40 per share

- 2021-11: HKD 41.60 per share

- 2021-12: HKD 41.85 per share

- 2022-01: HKD 42.10 per share

- 2022-02: HKD 40.45 per share

- 2022-03: HKD 42.35 per share

- 2022-04: HKD 41.85 per share

- 2022-05: HKD 42.35 per share

- 2022-06: HKD 41.00 per share

- 2022-07: HKD 41.50 per share

- 2022-08: HKD 40.25 per share

- 2022-09: HKD 36.05 per share

- 2022-10: HKD 34.55 per share

- 2022-11: HKD 37.55 per share

- 2022-12: HKD 41.35 per share

- 2023-01: HKD 41.90 per share

- 2023-02: HKD 39.55 per share

- 2023-03: HKD 37.85 per share

- 2023-04: HKD 39.15 per share

- 2023-05: HKD 36.05 per share

- 2023-06: HKD 36.00 per share

- 2023-07: HKD 35.85 per share

- 2023-08: HKD 32.75 per share

- 2023-09: HKD 31.00 per share

- 2023-10: HKD 29.25 per share

- 2023-11: HKD 28.00 per share

- 2023-12: HKD 30.30 per share

- 2024-01: HKD 25.40 per share

- 2024-02: HKD 26.00 per share

- 2024-03: HKD 25.80 per share

- 2024-04: HKD 25.85 per share

- 2024-05: HKD 26.50 per share

- 2024-06: HKD 24.65 per share

- 2024-07: HKD 25.30 per share

- 2024-08: HKD 27.55 per share

- 2024-09: HKD 29.35 per share

- 2024-10: HKD 28.30 per share

- 2024-11: HKD 27.25 per share

- 2024-12: HKD 27.10 per share

- 2025-01: HKD 24.35 per share

- 2025-02: HKD 25.40 per share

- 2025-03: HKD 25.45 per share

- 2025-04: HKD 26.80 per share

- 2025-05: HKD 27.40 per share

- 2025-06: HKD 28.20 per share

- 2025-07: HKD 28.25 per share

- 2025-08: HKD 26.36 per share

- 2025-09: HKD 26.38 per share

- 2025-10: HKD 28.50 per share

- 2025-11: HKD 30.88 per share

- 2025-12: HKD 29.80 per share

- 2026-01: HKD 34.58 per share

- 2026-02: HKD 37.34 per share

- 2026-03: HKD 31.98 per share

- 2026-04: HKD 33.36 per share

- 2026-05: HKD 31.54 per share

- 2026-06: HKD 30.50 per share

- 2026-07: HKD 33.12 per share

- 2026-08: HKD 32.34 per share

- 2026-09: HKD 32.40 per share

- 2026-10: HKD 31.86 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 28.70 per share, central HKD 34.46 per share, high HKD 39.97 per share

- FY2017: low HKD 16.22 per share, central HKD 18.31 per share, high HKD 21.09 per share

- FY2018: low HKD 28.71 per share, central HKD 34.44 per share, high HKD 39.91 per share

- FY2019: low HKD 25.22 per share, central HKD 28.25 per share, high HKD 32.28 per share

- FY2020: low HKD 20.32 per share, central HKD 22.67 per share, high HKD 25.80 per share

- FY2021: low HKD 19.78 per share, central HKD 22.06 per share, high HKD 25.09 per share

- FY2022: low HKD 16.82 per share, central HKD 18.79 per share, high HKD 21.42 per share

- FY2023: low HKD 16.87 per share, central HKD 18.73 per share, high HKD 21.19 per share

- FY2024: low HKD 18.43 per share, central HKD 20.37 per share, high HKD 22.97 per share

- FY2025: low HKD 19.99 per share, central HKD 21.79 per share, high HKD 24.18 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:16.714Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.