Competitive Advantages for MTR Underpinned by High-Quality Rail Assets and Unique Business Model

Established in 1975, MTR is the sole rail operator in Hong Kong following the rail merger with Kowloon-Canton Railway in 2007. It operates a rail-based transport system, comprising domestic rail services, light rail, Airport Express, and cross-border and a high-speed rail service to the mainland. With an average weekday patronage of more than 5.5 million passengers and growing, the firm is one of the world’s busiest rail operators. MTR differentiates itself from traditional rail operators with its "rail-plus-property" funding model. It is given the rights for property development along the rail corridor as a government incentive to induce construction. The high-quality rail network and unusual business model of rail plus property are MTR's key strengths, underpinning our narrow economic moat rating.