The analyst rating from JPMorgan for MTR CORPORATION is Neutral, with a target price of HKD29. The reasoning behind this rating is based on the company's full-year results, which showed a 4% year-over-year decline in profits that met market expectations. Although the recurring profits fell by 22% due to one-off expenses and coupon payments on perpetual bonds, management indicated that the decline in recurring profits, excluding these items, was only in single digits. Additionally, there was an 8% year-over-year increase in development project bookings, which partially offset the profit decline. However, the uncertainty regarding capital expenditure for the Northern Link Part 2 project and the lack of clarity in the three-year capital expenditure guidance contributed to the Neutral rating, as it suggests potential future increases in capital expenditure that are not currently accounted for in financial planning.
