[ET Net News Agency, 12 August 2019] Citi Research lifted its target price for MTR
Corporation (00066) to HK$55 from HK$52 and maintained its "buy" rating.
The research house said MTRC's 1H underlying profit would have increased by 26%
excluding the HK$2,436m provision on the Shatin-Central Link and South Western Railway
franchise in the UK. Management reiterated at the analyst briefing that its progressive
increasing dividend policy will be maintained despite the provisions.
Management indicated that a one-day service suspension would have as little impact as a
typhoon day would have done. However, if the social unrest persists, this could affect the
group's other businesses more (e.g. retail rental) versus rail. (KL)