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Swire Pacific Limited Class B (HK:0087)
:0087
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Swire Pacific Limited Class B
(0087)
Select Model
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Rating:74Outperform
Price Target:
HK$13.50
▲(15.38% Upside)
Swire Pacific's overall stock score reflects a stable financial foundation and positive earnings call sentiment, particularly in the Property and Aviation divisions. However, technical analysis indicates mixed signals, and valuation suggests moderate growth expectations. Operational challenges in profitability and revenue growth also weigh on the score.
Swire Pacific Limited Class B (0087) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$84.40B
Dividend Yield5.79%
Average Volume (3M)513.00K
Price to Earnings (P/E)12.8
Beta (1Y)0.50
Revenue Growth6.44%
EPS Growth-95.37%
CountryHK
Employees87,000
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.67
Shares Outstanding2,856,290,000
10 Day Avg. Volume343,878
30 Day Avg. Volume513,000
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.31
Price to Sales (P/S)0.98
P/FCF Ratio13.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$13.50Price Target Upside15.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Swire Pacific Limited Class B Business Overview & Revenue Model
Company DescriptionSwire 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 MoneySwire Pacific Limited Class B generates revenue through its diversified business segments. In the property sector, it earns income from leasing commercial and residential properties, as well as from property development and sales. In aviation, revenue comes from its ownership stakes in airlines, including Cathay Pacific, benefiting from passenger and cargo services. The beverages segment contributes through the production, distribution, and sale of beverages, notably as a Coca-Cola bottler in various regions. The company's marine services division provides offshore support services, while its trading & industrial division engages in various trading activities, contributing to its overall revenue. Strategic partnerships and joint ventures in each segment further enhance its earnings potential.
Swire Pacific Limited Class B Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
Swire Pacific's interim results for 2025 show a strong performance in the Property and Aviation divisions, with significant progress in real estate sales and aviation services. The Beverages division showed resilience in China but faced challenges in Southeast Asia. Despite a decline in statutory profit and softness in the Hong Kong office market, the company's strategic investments and achievements suggest a cautiously optimistic outlook.Q2-2025 Updates
Positive Updates
Strong Property Division Performance
The Property division showed strong underlying profit, boosted by the disposal of Miami retail and land assets. The division is 67% committed to a HKD 100 billion investment plan over 10 years, with 7 major projects underway in the Chinese Mainland.
Successful Real Estate Sales in China
Swire Properties sold out two batches of residences in Lujiazui Taikoo Yuan, Shanghai, marking a significant milestone as it is the first time the brand has entered the residential sector in the Chinese Mainland.
Positive Aviation Sector Performance
Aviation, particularly Cathay and HAECO, continues to perform well. HAECO achieved a 40% growth in recurring profit, driven by increased demand for maintenance services.
Beverage Division Growth in China
Revenue from the Chinese Mainland increased by 3%, with EBITDA margin improving to 12.8%. The company continues to invest in new production facilities in China.
Progress in Health Care Division
DeltaHealth achieved Class C standard for cardiovascular specialty, enhancing its reputation and patient referrals. The Indonesian venture continues to be profitable.
Negative Updates
Challenges in Southeast Asia Beverages
The Beverages division faced challenges in Southeast Asia with EBITDA decreasing by 28%, impacted by the depreciation of the Vietnamese dong and competitive pressures in Thailand.
Softness in Hong Kong Office Market
The Hong Kong office market remains soft, leading to a reduction in rental income, although this is partially offset by strong retail performance and high occupancy.
Statutory Profit Decline
Statutory profit dropped to HKD 815 million, reflecting adjustments in the value of investment properties.
Subdued Consumer Demand in China
Despite growth, the Chinese Mainland market faces subdued consumer demand, which may challenge revenue growth in the second half.
Company Guidance
During the Swire Pacific 2025 Interim Results Analyst Briefing, the company provided guidance on various performance metrics. The Property division demonstrated strong underlying profit, partly due to successful disposals in Miami, advancing 67% towards a HKD 100 billion investment plan over ten years. Seven major projects are under construction in the Chinese Mainland, and the division launched residential properties in Shanghai that sold out quickly. The Beverages segment showed solid results, with EBITDA margin improving to 12.8%, despite challenges in Southeast Asia, including a 28% EBITDA decrease in Vietnam and Cambodia due to market conditions and operational relocations. Aviation performed well, with HAECO’s recurring profit growing by 40% and Cathay Pacific maintaining strong passenger volumes. Financially, Swire Pacific reported an underlying profit of HKD 5.5 billion, with statutory profit at HKD 815 million, and decided on a 4% dividend increase per A Share to HKD 130. The group's balance sheet remains robust, with gearing at 23% and net debt of HKD 71.3 billion. Sustainability efforts are on track, with significant renewable energy utilization in their core divisions.Swire Pacific Limited Class B Financial Statement Overview
Summary
Swire Pacific's financial performance is stable with a strong balance sheet and manageable debt levels. However, declining profitability and revenue growth, along with inconsistent free cash flow, indicate operational challenges that need addressing.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 88.18B | 81.97B | 94.82B | 91.17B | 90.80B | 78.36B |
| Gross Profit | 32.69B | 30.46B | 35.15B | 34.19B | 35.28B | 30.50B |
| EBITDA | 14.21B | 14.62B | 35.57B | 16.07B | 16.41B | 12.21B |
| Net Income | 1.22B | 4.32B | 28.85B | 4.20B | 5.12B | -11.00B |
Balance Sheet | ||||||
| Total Assets | 480.03B | 476.56B | 447.75B | 434.77B | 436.32B | 433.11B |
| Cash, Cash Equivalents and Short-Term Investments | 26.84B | 21.03B | 14.08B | 11.61B | 22.89B | 29.26B |
| Total Debt | 103.84B | 99.47B | 74.90B | 74.34B | 68.25B | 74.17B |
| Total Liabilities | 165.94B | 157.89B | 122.98B | 118.83B | 112.15B | 113.96B |
| Stockholders Equity | 257.88B | 258.30B | 268.13B | 258.46B | 266.95B | 262.69B |
Cash Flow | ||||||
| Free Cash Flow | 8.40B | 6.05B | 6.32B | 4.73B | 7.45B | 8.46B |
| Operating Cash Flow | 13.39B | 10.46B | 9.92B | 8.16B | 11.66B | 11.46B |
| Investing Cash Flow | -11.32B | -14.60B | 13.03B | -17.54B | -6.34B | 1.73B |
| Financing Cash Flow | 6.94B | 12.62B | -21.73B | -1.40B | -12.34B | -5.69B |
Swire Pacific Limited Class B Technical Analysis
Positive
11.70
Price Trends
11.73
Negative
11.44
Positive
10.82
Positive
Market Momentum
-0.02
Positive
49.40
Neutral
76.31
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 11.7 is below the 20-day moving average (MA) of 11.77, below the 50-day MA of 11.73, and above the 200-day MA of 10.82, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 76.31 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$84.40B | 12.80 | 0.47% | 5.79% | 6.44% | -95.37% | |
71 Outperform | $199.35B | 25.77 | 1.42% | 4.35% | 1.93% | -65.62% | |
64 Neutral | $330.76B | 5.35 | 7.65% | 5.39% | 2.45% | -0.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $84.40B | 71.19 | 0.47% | 5.19% | 6.44% | -95.37% | |
61 Neutral | $41.36B | 7.14 | 6.26% | 4.93% | ― | ― | |
47 Neutral | $43.58B | 44.05 | -3.65% | 0.37% | -8.93% | -698.78% |
* Industrials Sector Average
HK:0087
Swire Pacific Limited Class B
11.70
2.19
23.03%
HK:0392
Beijing Enterprises Holdings
33.06
8.35
33.77%
HK:0001
CK Hutchison Holdings
51.10
11.07
27.64%
HK:0267
CITIC
11.26
2.70
31.51%
HK:0656
Fosun International
5.10
0.38
8.07%
HK:0019
Swire Pacific
65.50
5.14
8.51%
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.