MTRJF - MTR Corporation: Multiple Headwinds
Elevator Pitch
I assign a "Bearish" rating to Hong Kong-listed rail operator MTR Corporation Limited (MTRJF) (MTCPY) [66:HK]. The current coronavirus outbreak has led to a fall in domestic ridership for MTR Corporation's rail business, significant rent concessions for its property business, and a credit rating downgrade. MTR Corporation expects to recognize a HK$1,371 million provision for additional project management costs relating to the Shatin To Central Link rail project, which adds to the company's woes.
MTR Corporation trades at 27.9 times consensus forward next twelve months' P/E, which represents a premium to its historical