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Swire Pacific Limited Class A (HK:0019)
:0019
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Swire Pacific (0019) AI Stock Analysis

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HK:0019

Swire Pacific

(OTC:0019)

Rating:63Neutral
Price Target:
HK$72.00
▲(6.82% Upside)
Swire Pacific's overall score reflects a mix of strengths and challenges. The company's strong balance sheet and cash flow generation are offset by a high P/E ratio and bearish technical indicators. The earnings call provided positive insights into strategic investments and dividend growth, but market challenges remain a concern.

Swire Pacific (0019) vs. iShares MSCI Hong Kong ETF (EWH)

Swire Pacific Business Overview & Revenue Model

Company DescriptionSwire Pacific Limited (0019) is a leading conglomerate based in Hong Kong, with diversified interests in various sectors including property, aviation, beverages, marine services, and trading & industrial. The company is a part of the Swire Group and is known for its substantial property holdings, primarily in Hong Kong and Mainland China, as well as its significant stake in Cathay Pacific Airways. Swire Pacific operates through multiple subsidiaries and joint ventures, delivering a wide range of products and services across its business units.
How the Company Makes MoneySwire 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
The call highlighted strong performances in the Property and Aviation divisions, with successful property sales and strategic investments in new facilities. However, challenges in the Hong Kong office market and Southeast Asia beverages segment, along with subdued consumer demand in the Chinese Mainland, present notable concerns. The sentiment is balanced by record cash generation and increased dividends.
Q2-2025 Updates
Positive Updates
Strong Underlying Profit in Property Division
The Property division reported strong underlying profit, bolstered by the successful disposal of retail and land in Miami. The division is 67% committed to a HKD 100 billion investment plan, with 7 major projects under construction in the Chinese Mainland.
Successful Sales of Residential Properties
Swire Properties successfully sold two batches of residential properties in Lujiazui Taikoo Yuan, Shanghai. The first-time brand presence in the Chinese Mainland market was well-received, with properties selling out within an hour.
Aviation Sector Performance
The Aviation sector, including Cathay and HAECO, performed well with HAECO achieving a 40% growth in recurring profit. Cathay Pacific's passenger revenue increased by 14% and ASK by 26%.
Investment in Beverages and New Facilities
Swire Coca-Cola continues to invest in new production capacity with facilities under construction in the Chinese Mainland and a new plant inaugurated in Vietnam.
Positive EBITDA Growth in Chinese Mainland Beverages
EBITDA growth in the Chinese Mainland beverages segment was positive, offsetting some challenges in Southeast Asia.
Record Cash Generation and Dividend Increase
Strong cash generation from operations and a 4% increase in ordinary dividend per A Share to HKD 130.
Negative Updates
Soft Hong Kong Office Market
The Hong Kong office market remains soft, affecting rental income and resulting in high losses from property trading.
Challenges in Southeast Asia Beverages
The Southeast Asia beverage segment faced challenges such as plant relocation, currency depreciation, and intense competition, particularly in Vietnam and Thailand.
Subdued Consumer Demand in Chinese Mainland
Consumer demand in the Chinese Mainland remains subdued, presenting challenges for revenue growth in the beverage sector.
Decline in Statutory Profit
Statutory profit decreased to HKD 815 million due to changes in the value of investment properties.
Company Guidance
In the Swire Pacific 2025 Interim Results Analyst Briefing, the company provided detailed guidance across its core divisions. Swire Properties reported a 15% increase in underlying profit, primarily driven by strategic disposals in Miami and strong sales in Shanghai, while being 67% committed to a HKD 100 billion investment plan. The Beverages division showed resilience with a 3% revenue increase in the Chinese Mainland and positive EBITDA growth, despite challenges in Southeast Asia, including currency depreciation and competitive conditions. Aviation saw a 40% rise in recurring profit for HAECO and a 1% increase for Cathay Pacific. The group maintained a strong balance sheet with a gearing ratio at 23% and HKD 64 billion in liquidity, while dividends increased by 4% to HKD 130 per A Share. The outlook remains cautious due to market uncertainties, particularly in Hong Kong and Southeast Asia, but the company is focused on long-term strategic investments and maintaining a progressive dividend policy.

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
65
Positive
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
72
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue81.97B94.82B91.17B90.80B80.03B
Gross Profit30.46B35.15B34.19B35.28B30.21B
EBITDA14.62B35.57B16.07B16.41B8.55B
Net Income4.32B28.85B6.27B5.12B-10.10B
Balance Sheet
Total Assets476.56B447.75B434.77B436.32B433.11B
Cash, Cash Equivalents and Short-Term Investments21.03B14.08B11.61B22.89B29.26B
Total Debt99.47B74.90B73.29B66.89B73.32B
Total Liabilities157.89B122.98B118.83B112.15B113.96B
Stockholders Equity258.30B268.13B258.46B266.95B262.69B
Cash Flow
Free Cash Flow6.05B6.32B4.73B7.45B8.46B
Operating Cash Flow10.46B9.92B8.16B11.66B11.46B
Investing Cash Flow-14.60B13.03B-17.54B-6.34B1.73B
Financing Cash Flow12.62B-21.73B-1.40B-12.34B-5.69B

Swire Pacific Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price67.40
Price Trends
50DMA
69.12
Negative
100DMA
68.20
Negative
200DMA
66.67
Positive
Market Momentum
MACD
-0.62
Positive
RSI
45.41
Neutral
STOCH
26.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0019, the sentiment is Neutral. The current price of 67.4 is below the 20-day moving average (MA) of 67.62, below the 50-day MA of 69.12, and above the 200-day MA of 66.67, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 26.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0019.

Swire Pacific Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
63
Neutral
$85.09B72.560.47%4.97%6.44%-95.37%
$5.36B6.736.26%5.20%
$24.88B25.391.42%1.76%
$5.51B43.65-3.65%0.51%
$3.11B6.216.40%1.59%
74
Outperform
HK$85.09B12.770.47%5.65%6.44%-95.37%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0019
Swire Pacific
67.40
6.21
10.14%
BJINF
Beijing Enterprises Holdings
3.98
0.98
32.67%
CKHUF
CK Hutchison Holdings
6.50
1.28
24.52%
FOSUF
Fosun International
0.50
-0.01
-1.96%
GULRF
Guoco Group
9.62
-0.12
-1.23%
HK:0087
Swire Pacific Limited Class B
11.85
2.57
27.69%

Swire Pacific Corporate Events

Swire Pacific Renews Key Service Agreements with JS&SHK
Aug 7, 2025

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
Aug 7, 2025

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
Aug 1, 2025

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
Jun 30, 2025

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
Jun 27, 2025

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
Jun 25, 2025

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.

Swire Pacific Secures Shareholder Approval for Key Resolutions at AGM
May 15, 2025

Swire Pacific Limited held its Annual General Meeting on May 15, 2025, where all proposed resolutions were passed as ordinary resolutions. Key resolutions included the re-election of directors, reappointment of auditors, and granting of mandates for share buybacks and issuance. The approval of these resolutions reflects strong shareholder support and positions the company for continued strategic initiatives, potentially impacting its operational efficiency and market competitiveness.

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 Announces Board and Committee Appointments
May 15, 2025

Swire Pacific Limited has announced the composition of its Board of Directors and the members of its key committees, including the Audit, Nomination, and Remuneration Committees. This announcement is crucial for stakeholders as it outlines the leadership structure and governance framework, which are essential for strategic decision-making and maintaining corporate oversight.

The most recent analyst rating on (HK:0019) stock is a Sell with a HK$59.90 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 Q1 2025 Performance and Progress on Key Developments
May 9, 2025

Swire Properties Limited has released its quarterly operating statement for the first quarter of 2025, highlighting stable occupancy rates in its office and retail properties across Hong Kong, mainland China, and Miami. The report indicates a mixed performance in retail sales, with some locations experiencing growth while others saw a decline. The company is also progressing with several major development projects in mainland China, expected to complete between 2026 and 2027, which could enhance its market position and provide new opportunities for growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 27, 2025