Swire Pacific Limited Class B (0087) AI Stock Analysis

• Market Cap: HK$105.34B
• Dividend Yield: 5.73%
• Average Volume (3M): 584.93K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.50
• Revenue Growth: 6.44%
• EPS Growth: -95.37%
• Country: HK
• Employees: 87,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.26
• Shares Outstanding: 2,848,932,600
• 10 Day Avg. Volume: 764,945
• 30 Day Avg. Volume: 584,933
• PEG Ratio: -1.00
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 9.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.38
• Revenue Forecast (FY): HK$95.00B

• Rating: 69 Neutral
• Price Target: HK$14.50 ▲(24.25% Upside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is driven primarily by solid underlying financial footing (moderate leverage, stable revenues, improving cash flow) tempered by volatile and recently thinner profitability. Technicals are supportive with an uptrend and neutral momentum. Valuation is the main drag due to a high P/E, though the ~5% dividend yield helps, and the latest earnings call was net positive with strong Property/Aviation execution despite notable regional and market headwinds.

Positive Factors

Large Property investment pipeline

A multi-decade property pipeline with major projects and committed capital supports recurring rental income and staged development profits. High commitment reduces execution risk, enables predictable cashflows from sales/leases, and underpins long-term growth in the Property division.

Resilient Aviation operations and MRO strength

Strong maintenance and airline demand creates a durable earnings stream less tied to cyclical property cycles. HAECO's profit growth and sustained passenger volumes lend structural diversification, stable cash generation and steady equity-accounted income for the conglomerate over the medium term.

Solid balance sheet and improving cash flow

Moderate leverage and improving operating/free cash flow reinforce financial flexibility to fund development, sustain dividends, and weather cyclical downturns. The balance-sheet capacity supports investment plans and reduces refinancing risk over the next several quarters.

Negative Factors

Volatile earnings and thinner margins

Material swings in statutory earnings and net margins impair earnings visibility and complicate capital allocation. Persistent volatility weakens predictability of dividends and ROE, increasing reliance on non-recurring gains for positive headlines rather than steady operational performance.

Beverages underperforming in Southeast Asia

Regional currency moves and competitive markets have pressured beverage margins and require either restructuring or additional investment. Prolonged underperformance in SE Asia undermines a key consumer growth engine and may compress group-level EBITDA until market share or cost base is restored.

Property valuation sensitivity reducing statutory profits

Dependence on fair-value adjustments for statutory results creates earnings volatility tied to market revaluations. Soft HK office rents and valuation marks can depress reported profits and equity metrics, complicating investor assessment of underlying operational performance.

Swire Pacific Limited Class B 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 primarily through a mix of recurring operating income from its portfolio businesses and investment returns from subsidiaries and associates. Key revenue and earnings sources include: (1) Property: income from property development (sale of completed residential/other projects) and recurring revenue from property investment (rentals from office, retail, and other commercial properties), plus property management-related income where applicable; profitability is influenced by leasing demand, rental reversions, occupancy, asset revaluations (where recognized), and the timing/margin of development completions and sales. (2) Beverages: revenue from the production, bottling, distribution, and sale of branded non-alcoholic ready-to-drink beverages within its licensed territories; earnings are driven by sales volumes, product mix, pricing, raw material and packaging costs, manufacturing and logistics efficiency, and marketing execution; a significant factor is its long-term brand licensing relationship for beverage concentrate/brands (specific counterparty name not provided here; null). (3) Aviation: earnings contributions from aviation-related investments (including equity-accounted results, dividends, and other distributions where applicable), with performance tied to passenger and cargo demand, yields, fuel and operating costs, capacity management, and the broader travel cycle. (4) Trading & Industrial: revenue from trading, distribution, and industrial operations within the group’s portfolio (specific major business lines not provided here; null), typically generating income from product sales and services, with margins influenced by sourcing costs, demand, and operational execution. Across the group, reported results can also be affected by the share of profits from associates/joint ventures, interest income/expense, and portfolio/one-off items such as asset disposals, impairments, or fair-value changes when applicable.

Swire Pacific Limited Class B Financial Statement Overview

Summary

Overall fundamentals are sound: stable revenue trend, steady gross margins, moderate leverage, and consistently positive cash flow with improvement in 2024–2025. The main constraint is earnings visibility—net income has been volatile (including a 2020 loss and an outsized 2023), with thinner normalized margins in 2024–2025.

Income Statement

Revenue has been broadly stable over the last six years with moderate growth in 2025 after a decline in 2024. Profitability is mixed: gross margins have been steady (~37–39%), but net income is volatile—2023 was exceptionally strong (very high net margin), followed by a sharp normalization in 2024–2025 with much thinner net margins. The 2020 loss highlights downside sensitivity, and overall earnings consistency is the key weakness despite resilient top-line and solid operating profitability most years.

Balance Sheet

The balance sheet looks solid for a conglomerate, with moderate leverage and sizable equity. Debt-to-equity has generally stayed in a reasonable range (~0.26–0.39), though leverage has drifted higher in 2024–2025 versus 2021–2023. Total assets and equity are large and relatively stable, supporting financial flexibility. The main watch-out is that returns on equity have swung materially (including negative in 2020), indicating profitability—not balance sheet capacity—is the bigger driver of shareholder outcomes.

Cash Flow

Cash generation is consistently positive, with operating cash flow improving in 2024–2025 and free cash flow also rising in 2025 after a small dip in 2024. Free cash flow has covered a meaningful portion of earnings in recent years, but cash conversion is not consistently strong and appears pressured in 2024–2025 versus earlier periods. Overall, cash flow quality is decent and improving recently, but not strong enough to fully offset the earnings volatility seen on the income statement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	90.47B	81.97B	94.82B	91.17B	90.80B
Gross Profit	33.74B	30.46B	35.15B	34.19B	35.28B
EBITDA	15.50B	14.62B	35.57B	16.07B	16.41B
Net Income	2.94B	4.32B	28.85B	4.20B	5.12B
Balance Sheet
Total Assets	476.41B	476.56B	447.75B	434.77B	436.32B
Cash, Cash Equivalents and Short-Term Investments	23.17B	21.03B	14.08B	11.61B	22.89B
Total Debt	98.29B	99.47B	74.90B	74.34B	68.25B
Total Liabilities	160.18B	157.89B	122.98B	118.83B	112.15B
Stockholders Equity	259.58B	258.30B	268.13B	258.46B	266.95B
Cash Flow
Free Cash Flow	8.96B	6.05B	6.32B	4.73B	7.45B
Operating Cash Flow	14.55B	10.46B	9.92B	8.16B	11.66B
Investing Cash Flow	-1.70B	-14.60B	13.03B	-17.54B	-6.34B
Financing Cash Flow	-12.32B	12.62B	-21.73B	-1.40B	-12.34B

Swire Pacific Limited Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 11.67 is below the 20-day moving average (MA) of 13.48, below the 50-day MA of 12.77, and below the 200-day MA of 11.85, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 59.38 is Neutral, neither overbought nor oversold. The STOCH value of 64.58 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0267	72 Outperform	HK$329.30B	4.61	7.65%	5.15%	2.45%	-0.36%
0087	69 Neutral	HK$105.34B	28.96	0.47%	5.73%	6.44%	-95.37%
0019	68 Neutral	HK$105.34B	28.96	0.47%	5.26%	6.44%	-95.37%
0392	66 Neutral	HK$44.89B	2.72	6.26%	4.94%	―	―
0001	64 Neutral	HK$223.10B	54.28	1.42%	4.02%	1.93%	-65.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0656	42 Neutral	HK$32.34B	13.10	-3.65%	0.44%	-8.93%	-698.78%

Swire Pacific Limited Class B Corporate Events

Swire Pacific Declares Second Interim Dividend of HKD 0.50 Per Share for 2025

Swire Pacific Limited has declared a second interim ordinary dividend of HKD 0.50 per share for the financial year ending 31 December 2025, signalling continued shareholder returns midway through the fiscal period. The announcement underscores its role as an established Hong Kong-listed conglomerate, maintaining regular capital distributions in line with its historical practice.

The dividend will be paid in Hong Kong dollars, with shares trading ex-dividend on 8 April 2026 and a record date of 10 April 2026 to determine eligible shareholders. Payment is scheduled for 8 May 2026, and administrative details, including registration cut-off and share registrar information, have been set, providing clarity and timing for investors and income-focused stakeholders.

The most recent analyst rating on (HK:0087) stock is a Hold with a HK$14.00 price target. To see the full list of analyst forecasts on Swire Pacific Limited Class B stock, see the HK:0087 Stock Forecast page.