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Swire Pacific Limited Class B (HK:0087)
:0087
RESEARCH TOOLSreports
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Swire Pacific Limited Class B
(0087)
Rating:81Outperform
Price Target:
HK$13.00
▲(14.04%Upside)
Swire Pacific Limited Class B (0087) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$86.04B
Dividend Yield7.37%
Average Volume (3M)667.50K
Price to Earnings (P/E)3.7
Beta (1Y)0.47
Revenue Growth-13.56%
EPS Growth-84.68%
CountryHK
Employees87,000
SectorIndustrials
Sector Strength89
IndustryConglomerates
Share Statistics
EPS (TTM)0.32
Shares Outstanding2,856,290,000
10 Day Avg. Volume699,036
30 Day Avg. Volume667,503
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.32
Price to Sales (P/S)0.00
P/FCF Ratio14.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Swire Pacific Limited Class B Business Overview & Revenue Model
Company DescriptionSwire Pacific Limited Class B (0087) is a conglomerate headquartered in Hong Kong, operating across various sectors including property, aviation, beverages, marine services, and trading and industrial businesses. The company is known for its diversified portfolio, with significant operations in Hong Kong and Mainland China. Swire Pacific is a major player in real estate development and management, and it holds a notable stake in the aviation sector through its association with Cathay Pacific Airways.
How the Company Makes MoneySwire Pacific Limited Class B makes money through a diversified revenue model that spans multiple sectors. In the property sector, the company earns revenue from leasing and management of commercial and retail properties, as well as from property development and sales. In aviation, Swire Pacific generates income through its significant investment in Cathay Pacific Airways, benefiting from passenger and cargo services. The beverages segment contributes to its earnings through the production, distribution, and sale of beverages, primarily in partnership with The Coca-Cola Company. The marine services division provides offshore support services, while the trading and industrial sector involves various businesses, including automotive trading and manufacturing. Strategic partnerships, such as those with The Coca-Cola Company and its stake in Cathay Pacific, play a crucial role in its earnings, providing stable revenue streams across different economic cycles.
Swire Pacific Limited Class B Earnings Call Summary
Earnings Call Date:Mar 13, 2025
(Q4-2024)
| % Change Since: 4.49%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. Strategic investments in key regions, strong performance in the aviation sector, and growth in the Chinese Mainland beverages market were notable highlights. However, challenges such as a decline in recurring profits, lower office rental income in Hong Kong, and supply chain issues in the aviation sector were significant concerns.Q4-2024 Updates
Positive Updates
Investment in Strategic Regions
Swire Pacific committed 67% of their HK$100 billion investment plan, focusing on the Greater Bay Area, INDIGO projects in Beijing, and new residential projects in Shanghai.
Cathay Pacific's Strong Performance
Cathay Pacific achieved a 45% growth in recurring profit, attributed to robust demand for passenger travel and strong cargo performance, also committing HK$100 billion in re-fleeting over the next seven years.
Increase in Dividend
Swire Pacific increased its dividend by 5% despite a challenging operating environment.
Chinese Mainland Beverages Growth
Recurring profit from the Chinese Mainland went up by 11%, driven by price increases and strong market execution.
Healthcare Expansion
Swire Pacific completed acquisitions in the healthcare sector, including a hospital in Shanghai and an investment in 70 hospitals in Indonesia, with a planned HK$20 billion investment over 10 years.
Negative Updates
Decline in Recurring Underlying Profit
Recurring underlying profit declined by 11% from the prior year, primarily due to the sale of the US bottler in 2023.
Lower Office Rental Income in Hong Kong
There was a continued decline in office rental income in Hong Kong, contributing to lower profits in the property division.
Challenges in Southeast Asia Beverages
The EBITDA in Vietnam and Cambodia decreased by 7%, affected by exchange rate fluctuations and higher relocation costs.
Aviation Industry Supply Chain Challenges
Supply chain challenges continue to affect the aviation industry, including Cathay Pacific, impacting equipment orders and operations.
Company Guidance
During the Swire Pacific 2024 Annual Results Analyst Briefing, several key metrics were highlighted by the leadership team. Despite a challenging operating environment, Swire Properties committed 67% of their HK$100 billion investment plan, with significant investments in the Greater Bay Area and new residential projects in Shanghai. The company's recurring underlying profit was reported at HK$9.3 billion, down 11% year-over-year, primarily due to the disposal of the US bottler in 2023. However, excluding this, there was a slight gain in recurring profit. As a result, dividends were increased by 5%. The beverage segment saw a decrease in overall profit due to the US bottler sale, but Chinese Mainland's recurring profit rose by 11%, driven by price increases. The aviation sector, particularly Cathay Pacific, showed strong performance with a 45% growth in recurring profit, supported by passenger travel demand and cargo performance. Swire Pacific maintained a healthy gearing ratio of 22.1%, with net debt at HK$70 billion and significant liquidity of over HK$43 billion. The company also focused on sustainability, with Swire Properties achieving top rankings in the Dow Jones Index for Real Estate.Swire Pacific Limited Class B Financial Statement Overview
Summary
Swire Pacific demonstrates a stable financial foundation with a strong balance sheet and manageable debt levels. However, recent declines in profitability and revenue growth, along with fluctuating free cash flow, indicate the need for strategic adjustments to improve earnings and cash generation. Despite these challenges, the solid equity levels provide a buffer against economic uncertainties.Income Statement
Swire Pacific's income statement reveals declining revenue growth and profitability. The gross profit margin remained relatively stable, but there was a significant decline in EBIT and EBITDA margins in 2024 compared to 2023, indicating increased operational challenges. Net profit margin also fell as net income decreased substantially, suggesting pressures on earnings.72
Positive
Balance Sheet
The balance sheet is robust, with a solid equity base and a manageable level of debt. The debt-to-equity ratio increased slightly, reflecting higher leverage, though it's still within a reasonable range. Return on equity has decreased, indicating reduced profitability relative to equity. The equity ratio remains strong, highlighting financial stability.85
Very Positive
Cash Flow
Cash flow analysis shows stable operating cash flows, but free cash flow growth has been inconsistent. The operating cash flow to net income ratio improved, reflecting efficient cash generation relative to profits. However, free cash flow to net income declined, indicating challenges in maintaining cash reserves after capital expenditures.78
Positive
| 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 Limited Class B Technical Analysis
Positive
11.40
Price Trends
10.83
Positive
10.56
Positive
10.35
Positive
Market Momentum
0.19
Negative
62.84
Neutral
70.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0087, the sentiment is Positive. The current price of 11.4 is above the 20-day moving average (MA) of 11.07, above the 50-day MA of 10.83, and above the 200-day MA of 10.35, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 70.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0087.
Swire Pacific Limited Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$86.04B | 3.73 | 1.64% | 7.37% | -13.56% | -84.68% | |
75 Outperform | $182.88B | 10.75 | 3.16% | 6.34% | 2.10% | -27.28% | |
75 Outperform | HK$40.76B | 7.33 | 4.75% | ― | ― | ||
72 Outperform | $315.92B | 5.11 | 7.93% | 7.25% | 8.48% | -1.70% | |
71 Outperform | ¥255.13B | 13.43 | 8.49% | 3.04% | 6.31% | 12.97% | |
67 Neutral | $86.04B | 22.44 | 1.64% | 6.09% | -13.56% | -84.68% | |
52 Neutral | $38.94B | 44.05 | -3.59% | 0.42% | -4.89% | -404.51% |
* Industrials Sector Average
Performance Comparison
HK:0087
Swire Pacific Limited Class B
11.66
1.51
14.88%
HK:0001
CK Hutchison Holdings
47.95
9.79
25.66%
HK:0267
CITIC
11.08
4.17
60.39%
HK:0392
Beijing Enterprises Holdings
32.35
7.58
30.61%
HK:0019
Swire Pacific
68.75
1.77
2.65%
HK:0656
Fosun International
4.89
0.67
15.85%
Swire Pacific Limited Class B Corporate Events
Swire Pacific Limited Declares Second Interim Dividend for 2024
Mar 13, 2025
Swire Pacific Limited has announced a second interim ordinary dividend of HKD 0.42 per share for the financial year ending 31 December 2024. The ex-dividend date is set for 9 April 2025, with the payment date scheduled for 9 May 2025. This dividend announcement reflects the company’s ongoing commitment to providing shareholder returns and may influence investor sentiment positively.
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.