中银国际-地铁公司-盈利调整

-070314-English 2页

Better-than-expected earnings for 2006. MTR Corporation
announced that its 2006 net profits dropped 8.2% YoY to HK$7.76bn.
Underlying earnings, excluding revaluation surplus and related
deferred tax, fell 2.9% YoY to HK$5.96bn, but still 8% above our
forecast of HK$5.5bn due to a higher-than-expected contribution from
property development. We remain positive on MTRC due to the
potential NAV enhancement from its pending merger with the
Kowloon-Canton Railway Corporation (KCRC). In view of the
higher-than-expected earnings from property development, we have
revised up our NAV estimates by 2% to HK$26.4 per share. In addition,
we have raised our target price slightly to HK$23.80 from HK$23.50,
based on a discount of 10% to its NAV per share, which includes the
merger effect and future Hong Kong projects.