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Swire Pacific Limited Class A (SWRAF)
OTHER OTC:SWRAF
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Swire Pacific (SWRAF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.63B
Dividend Yield5.09%
Average Volume (3M)83.00
Price to Earnings (P/E)21.5
Beta (1Y)0.30
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees87,000
SectorIndustrials
Sector Strength90
IndustryConglomerates
Share Statistics
EPS (TTM)0.04
Shares Outstanding778,988,000
10 Day Avg. Volume0
30 Day Avg. Volume83
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.31
Price to Sales (P/S)0.00
P/FCF Ratio14.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.66Price Target Upside0.35% Upside
Rating ConsensusHold
Number of Analyst Covering1
Swire Pacific 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 Money
Swire Pacific Earnings Call Summary
Earnings Call Date:Mar 13, 2025
(Q4-2024)
| % Change Since: -6.90%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
Swire Pacific demonstrated strong strategic investments in property and beverages, along with robust performance in the aviation sector. However, the decline in recurring underlying profit and challenges in the Hong Kong office rental market presented significant hurdles. Despite these challenges, the company's strategic investments and sustainability achievements reflect a positive outlook.Q4-2024 Updates
Positive Updates
Strategic Investments and Expansion
Swire Pacific continued to invest in various segments, including a commitment of HK$67 billion of the HK$100 billion investment plan in Swire Properties and a significant increase in its stake to 56% in the Thai bottler ThaiNamthip. The company also launched its first residential projects in Shanghai.
Strong Aviation Performance
Cathay Pacific achieved a 45% growth in recurring profit, driven by strong passenger travel demand and cargo performance. The company committed a further HK$100 billion over the next seven years in re-fleeting.
Improved Recurring Profit in Beverages
Recurring profit from the Chinese Mainland in the beverages segment increased by 11%, driven by price increases. The overall beverage business expanded into Southeast Asia, providing significant growth opportunities.
Sustainability Achievements
Swire Properties became number one in the Dow Jones Best-in-Class World Index for Real Estate Management and Development Industry, showcasing strong sustainability credentials.
Negative Updates
Decline in Recurring Underlying Profit
The recurring underlying profit was down by 11% compared to the previous year, primarily due to the impact of the 2023 sale of the US bottler.
Challenges in Hong Kong Office Rental Market
The office rental income in Hong Kong continued to be lower, reflecting subdued market conditions.
Exchange Rate and Relocation Costs Impact
In Vietnam and Cambodia, EBITDA decreased by 7% due to unfavorable exchange rate movements and higher relocation costs.
Company Guidance
In the Swire Pacific 2024 Annual Results Analyst Briefing, the company reported a recurring underlying profit of HK$9.3 billion, down 11% from the previous year, largely due to the sale of its US bottler in 2023. Despite this, the company increased its dividend by 5%. Swire Properties committed 67% of its HK$100 billion investment plan, with significant investments in the Greater Bay Area and a successful residential project launch in Shanghai. The aviation sector showed robust performance, with Cathay Pacific committing HK$100 billion over seven years for fleet expansion. Swire Coca-Cola saw revenue growth in the Chinese Mainland, aided by strategic price rises and market execution, although overall profit was impacted by the US business disposal. The company maintained a healthy net debt of HK$70 billion with a gearing ratio of 22.1% and plans continued investment across its divisions with a focus on sustainability and expanding in Southeast Asia and healthcare.Swire Pacific Financial Statement Overview
Summary
Swire Pacific presents a mixed financial performance. The income statement highlights challenges in revenue growth and profitability, with a negative revenue growth rate and low net profit margin. The balance sheet shows strong equity and manageable debt levels, indicating financial stability. Cash flow generation is robust, although recent free cash flow growth is slightly negative. Overall, the company demonstrates stability but faces challenges in growth and profitability.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.65
Positive
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.72
Positive
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.70
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 | EBIT |
| 4.24B | 30.62B | 11.83B | 12.10B | -3.10B | EBITDA |
| 14.62B | 35.57B | 16.07B | 16.41B | 8.55B | Net Income Common Stockholders |
| 4.32B | 28.85B | 6.27B | 5.12B | -10.10B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 21.03B | 14.08B | 11.61B | 22.89B | 29.26B | Total Assets |
| 476.56B | 447.75B | 434.77B | 436.32B | 433.11B | Total Debt |
| 99.47B | 74.90B | 73.29B | 66.89B | 73.32B | Net Debt |
| 79.65B | 63.06B | 61.67B | 43.99B | 44.05B | 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 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| $10.63B | 21.51 | 1.64% | 5.09% | ― | ― | ||
66 Neutral | $4.50B | 12.29 | 5.40% | 248.66% | 4.13% | -12.33% | |
| $5.33B | 7.04 | 4.88% | ― | ― | |||
| $22.40B | 10.16 | 3.16% | 4.86% | ― | ― | ||
| $4.63B | 43.65 | -3.59% | 0.97% | ― | ― | ||
| $2.69B | 5.37 | 6.40% | 6.00% | ― | ― | ||
75 Outperform | HK$83.41B | 3.54 | 1.64% | 6.19% | -13.56% | -84.68% |
* Industrials Sector Average
Performance Comparison
SWRAF
Swire Pacific
8.63
0.64
8.01%
BJINF
Beijing Enterprises Holdings
3.98
0.44
12.43%
CKHUF
CK Hutchison Holdings
5.82
1.33
29.62%
FOSUF
Fosun International
0.50
-0.07
-12.28%
GULRF
Guoco Group
8.36
-0.11
-1.30%
HK:0087
Swire Pacific Limited Class B
10.86
1.50
16.03%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.