Swire Pacific (0019) AI Stock Analysis

• Market Cap: HK$85.45B
• Dividend Yield: 5.1%
• Average Volume (3M): 918.37K
• Price to Earnings (P/E): 72.7
• Beta (1Y): 0.49
• Revenue Growth: 6.44%
• EPS Growth: -95.37%
• Country: HK
• Employees: 87,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 4.01
• Shares Outstanding: 778,988,000
• 10 Day Avg. Volume: 804,474
• 30 Day Avg. Volume: 918,370
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$82.58
• Price Target Upside: 23.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: HK$72.00 ▲(8.03% Upside)

Swire Pacific's overall stock score reflects a stable financial base with strong cash flow generation and a solid balance sheet. However, challenges in revenue growth, profitability, and high valuation weigh on the score. The earnings call provided positive insights into strategic investments and dividend growth, but market uncertainties and regional challenges remain significant concerns.

Swire Pacific Business Overview & Revenue Model

Company Description

Swire Pacific Limited engages in property, aviation, beverages, marine, and trading and industrial businesses in Hong Kong, Mainland China, rest of Asia, the United States, and internationally. The company's Property division develops, owns, and operates mixed-use properties. This division's property investment portfolio comprises office and retail premises, serviced apartments, other luxury residential accommodations, and commercial mixed-use developments; and trading portfolio consists of residential properties. It also owns and manages two hotels in Hong Kong and four hotels in Mainland China, as well as owns interests in the Mandarin Oriental hotel in the United States. The company's Aviation division provides flight catering and ramp, passenger and cargo services, and aircraft maintenance and modification services. As of December 31, 2021, it had a fleet of 234 aircraft. Its Beverages division owns rights to manufacture, market, and distribute refreshing soft drinks to consumers. The company's Trading & Industrial division retails and distributes footwear, apparel, and accessories through its 164 retail outlets; sells passenger cars, commercial vehicles, motorcycles, and scooters; operates a chain of 538 bakery stores; packages and sells sugar products under the Taikoo Sugar brand; and offers waste management services. The company was founded in 1816 and is based in Central, Hong Kong.

How the Company Makes Money

Swire Pacific makes money through a diversified revenue model spread across its core sectors. In the property division, the company earns revenue from leasing commercial and residential properties, as well as from property development and sales. Its aviation sector contributes to earnings through Cathay Pacific Airways, where revenue is generated from passenger and cargo transportation services. The beverages segment, dominated by Swire Coca-Cola, generates income from manufacturing, marketing, and distributing beverages. The marine services sector provides offshore support services, while the trading & industrial division includes a variety of businesses ranging from automotive distribution to waste management solutions. The company's earnings are significantly influenced by its strategic partnerships, particularly with global brands like Coca-Cola, which bolster its market presence and distribution capabilities.

Swire Pacific Financial Statement Overview

Summary

Swire Pacific shows mixed financial performance. The income statement reveals challenges with a negative revenue growth rate and low net profit margin. However, the balance sheet is strong with a solid equity base and low debt-to-equity ratio. Cash flow generation is robust, although recent free cash flow growth is slightly negative.

Income Statement

Swire Pacific's income statement reveals mixed performance. The gross profit margin for the latest year is approximately 37.16%, showing efficient cost management. However, the net profit margin is relatively low at 5.27%, indicating challenges in converting revenue to profit. The revenue growth rate from the previous year was negative at -13.55%, reflecting a decline in sales. EBIT and EBITDA margins are 5.17% and 17.83% respectively, indicating moderate operational efficiency.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 54.21%, suggesting financial stability. The debt-to-equity ratio is 0.39, which is relatively low, indicating manageable leverage. ROE stands at 1.67%, lower than desired, reflecting modest returns on equity investment.

Cash Flow

Swire Pacific's cash flow analysis shows a positive operating cash flow to net income ratio of 2.42, indicating strong cash generation from operations. Free cash flow to net income ratio is 1.40, reflecting a good conversion of profits into free cash flow. However, the free cash flow growth rate is slightly negative at -4.29%, which could signal potential challenges in sustaining cash flow generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.97B	94.82B	91.17B	90.80B	80.03B
Gross Profit	30.46B	35.15B	34.19B	35.28B	30.21B
EBITDA	14.62B	35.57B	16.07B	16.41B	8.55B
Net Income	4.32B	28.85B	6.27B	5.12B	-10.10B
Balance Sheet
Total Assets	476.56B	447.75B	434.77B	436.32B	433.11B
Cash, Cash Equivalents and Short-Term Investments	21.03B	14.08B	11.61B	22.89B	29.26B
Total Debt	99.47B	74.90B	73.29B	66.89B	73.32B
Total Liabilities	157.89B	122.98B	118.83B	112.15B	113.96B
Stockholders Equity	258.30B	268.13B	258.46B	266.95B	262.69B
Cash Flow
Free Cash Flow	6.05B	6.32B	4.73B	7.45B	8.46B
Operating Cash Flow	10.46B	9.92B	8.16B	11.66B	11.46B
Investing Cash Flow	-14.60B	13.03B	-17.54B	-6.34B	1.73B
Financing Cash Flow	12.62B	-21.73B	-1.40B	-12.34B	-5.69B

Swire Pacific Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 66.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0019, the sentiment is Negative. The current price of 66.65 is below the 20-day moving average (MA) of 67.15, below the 50-day MA of 67.68, and above the 200-day MA of 65.86, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.30 is Neutral, neither overbought nor oversold. The STOCH value of 7.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0019.

Swire Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0053	80 Outperform	HK$24.72B	6.13	―	4.34%	-1.54%	9.96%
0392	75 Outperform	HK$42.17B	7.27	―	4.83%	―	―
0087	74 Outperform	HK$84.60B	12.67	1.67%	5.85%	6.44%	-95.37%
0001	71 Outperform	HK$190.35B	24.61	3.20%	4.47%	1.93%	-65.62%
0019	63 Neutral	HK$85.45B	72.67	0.47%	5.10%	6.44%	-95.37%
0656	57 Neutral	HK$43.67B	-9.11	-3.68%	0.37%	-8.93%	-698.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Swire Pacific Corporate Events

Swire Pacific Renews Key Service Agreements with JS&SHK

Swire Pacific Limited has announced the renewal of its Services Agreements with JS&SHK, effective from January 1, 2026, to December 31, 2028. These agreements, which involve the provision of advisory and operational services by JS&SHK to Swire Pacific, will continue to be classified as continuing connected transactions under the Hong Kong Listing Rules. The renewal ensures the continuation of strategic support and operational services crucial for Swire Pacific’s business operations, with service fees calculated based on dividends and profits. This renewal reflects Swire Pacific’s commitment to maintaining robust operational support and strategic alignment with JS&SHK, potentially impacting its operational efficiency and stakeholder relations positively.

The most recent analyst rating on (HK:0019) stock is a Hold with a HK$71.00 price target. To see the full list of analyst forecasts on Swire Pacific stock, see the HK:0019 Stock Forecast page.

Swire Pacific Limited Announces 2025 Interim Results

Swire Pacific Limited has released its 2025 interim results, highlighting its financial performance and operational achievements. The announcement provides insights into the company’s strategic initiatives and market positioning, which are crucial for stakeholders to understand its future trajectory and potential impact on the industry.

The most recent analyst rating on (HK:0019) stock is a Hold with a HK$71.00 price target. To see the full list of analyst forecasts on Swire Pacific stock, see the HK:0019 Stock Forecast page.

Swire Properties Reports Stable Occupancy and Progress on Mainland Developments

Swire Properties Limited has released its quarterly operating statement for the second quarter of 2025, highlighting occupancy rates and rental performance across its Hong Kong and Mainland China properties. The report indicates stable occupancy in Hong Kong’s office spaces, with slight variations in rental reversion rates. Retail properties in both regions show mixed performance, with some locations experiencing increased retail sales, while others see declines. The company is also progressing with several development projects in Mainland China, expected to complete between 2026 and 2027, which could enhance its market positioning and offer growth opportunities.

The most recent analyst rating on (HK:0019) stock is a Hold with a HK$75.00 price target. To see the full list of analyst forecasts on Swire Pacific stock, see the HK:0019 Stock Forecast page.

Swire Pacific Updates Nomination Committee Terms

Swire Pacific Limited has updated the terms of reference for its Nomination Committee, effective from July 1, 2025. The committee, established in March 2022, is tasked with reviewing the board’s structure and composition, assessing director independence, and ensuring board diversity. This move aims to align the board’s capabilities with the company’s corporate strategy, potentially enhancing its governance and strategic direction.

The most recent analyst rating on (HK:0019) stock is a Hold with a HK$68.00 price target. To see the full list of analyst forecasts on Swire Pacific stock, see the HK:0019 Stock Forecast page.

Swire Pacific Sells Brickell City Centre Interests to Simon Property

Swire Pacific Limited, through its subsidiary Swire Properties, has completed a significant transaction involving the sale of its interests in Brickell City Centre to Simon Property. The transaction, valued at up to approximately US$548.7 million, includes retail, parking, and facilities interests. This move is part of Swire’s strategy to optimize its asset portfolio, potentially impacting its market positioning by reallocating resources to other strategic areas. The transaction is classified as a discloseable and connected transaction under Hong Kong’s Listing Rules, highlighting its importance to stakeholders.

The most recent analyst rating on (HK:0019) stock is a Hold with a HK$71.00 price target. To see the full list of analyst forecasts on Swire Pacific stock, see the HK:0019 Stock Forecast page.

Swire Pacific Schedules Board Meeting for Interim Results and Dividends

Swire Pacific Limited has announced a board meeting scheduled for August 7, 2025, to discuss the interim results for the first half of the year and consider the payment of interim dividends. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, while also adhering to regulatory requirements regarding securities trading by directors.

The most recent analyst rating on (HK:0019) stock is a Hold with a HK$71.00 price target. To see the full list of analyst forecasts on Swire Pacific stock, see the HK:0019 Stock Forecast page.