MTR CORPORATION(00066) 智通财经·2024-04-18 08:26Core Viewpoint - The report from Jefferies maintains a "Hold" rating for MTR Corporation (00066) with a target price of HKD 23.5, highlighting investor interest in the recovery of Hong Kong's transportation business and the positive outlook due to recent government measures in the property market [1] Group 1: Transportation Business Recovery - Local transportation service passenger volume is on the rise, with traffic reaching 95% and 100% of 2019 levels in January and February respectively [1] - High-speed rail services are showing strong momentum due to increased cross-border travel, while the Airport Express is recovering more slowly, likely due to Hong Kong's later reopening compared to other regions [1] - Management believes that further recovery in transportation volume is crucial for achieving positive EBIT, with expectations that cost inflation will be manageable and some costs may be offset by fare increases [1] Group 2: Development Projects and Dividend Policy - MTR's development projects are considered more defensive compared to other Hong Kong property developers, with a diverse project pipeline and various site selections helping to mitigate risks [1] - The sentiment in the property market may affect developers' willingness to acquire land, with only one new land parcel in Tung Chung East expected to be launched in the next 12 months [1] - MTR has a steady dividend growth policy, with no specific targets for dividend yield or payout ratio, but considers a yield of around 5% to be reasonable given the differing risk profiles compared to other developers [1]