Swire Pacific (SWRAY) AI Stock Analysis

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Swire Pacific

(OTC:SWRAY)

Rating:75Outperform

Price Target:

$10.00

▲(11.23%Upside)

Swire Pacific's overall score reflects a strong financial base with strategic growth investments, particularly in aviation and beverage sectors. High valuation metrics and caution around overbought technical signals moderate the score.

Swire Pacific (SWRAY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$11.29B

Dividend Yield6.11%

Average Volume (3M)2.50K

Price to Earnings (P/E)22.9

Beta (1Y)0.11

Revenue Growth-13.25%

EPS Growth-84.66%

CountryUS

Employees87,000

SectorIndustrials

Sector Strength90

IndustryConglomerates

Share Statistics

EPS (TTM)0.04

Shares Outstanding778,988,000

10 Day Avg. Volume544

30 Day Avg. Volume2,497

Financial Highlights & Ratios

PEG Ratio-0.22

Price to Book (P/B)0.31

Price to Sales (P/S)0.00

P/FCF Ratio14.27

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$9.00

Price Target Upside0.11% Upside

Rating ConsensusHold

Number of Analyst Covering0

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 MoneySwire Pacific generates revenue through its diversified business segments. In the property sector, it earns income from residential and commercial property sales, as well as rental income from its investment properties. The aviation sector contributes through its ownership in Cathay Pacific, generating revenue from passenger and cargo services. The beverages division is a key revenue stream, where Swire Pacific acts as a bottler and distributor for Coca-Cola, earning profit from sales across the Asia-Pacific market. Additionally, the marine services and trading and industrial sectors offer supplementary income through a variety of shipping, logistics, and industrial operations. Strategic partnerships, particularly with Coca-Cola and Cathay Pacific, and the company's significant regional presence are crucial factors that enhance its revenue-generating capabilities.

Swire Pacific Earnings Call Summary

Earnings Call Date:Mar 13, 2025

(Q4-2024)

% Change Since: -1.43%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive strategic investments and strong performance in aviation and beverages, alongside challenges such as profit declines and lower rental income in Hong Kong. The company's continued focus on shareholder returns and sustainability achievements also contributed positively.

Q4-2024 Updates

Positive Updates

Significant Investment Commitments

Swire Pacific has committed 67% of their HK$100 billion investment plan, with continued investments in the Greater Bay Area and successful launches in Shanghai.

Increased Stake in Thai Bottler

Swire Pacific increased their stake to just under 56% in ThaiNamthip, expanding their footprint in Southeast Asia.

Strong Performance in Aviation

Cathay Pacific achieved a 45% growth in recurring profit, driven by robust demand for passenger travel and strong cargo performance.

Positive Dividend and Shareholder Returns

Despite challenges, Swire Pacific increased its dividend by 5% and continued its share buyback program, emphasizing its commitment to shareholder returns.

Beverages Growth in Chinese Mainland

Recurring profit from the Chinese Mainland increased by 11%, driven by price increases and market execution.

Sustainability Achievements

Swire Properties became number one in the Dow Jones Best-in-Class World Index for Real Estate Management and Development Industry.

Negative Updates

Decline in Recurring Underlying Profit

Recurring underlying profit was down 11% due to the sale of the US bottling business in 2023, impacting overall financial performance.

Lower Office Rental Income in Hong Kong

Continued lower office rental income in Hong Kong affected the property segment, although retail sales began to normalize.

Impact of Swire Coca-Cola USA Disposal

The disposal of Swire Coca-Cola USA led to a decrease in overall profit, affecting the Beverages segment's performance.

Currency and Tax Challenges in Southeast Asia

EBITDA in Vietnam and Cambodia decreased by 7% due to unfavorable exchange rates and relocation costs, while Thailand and Laos were impacted by sugar tax legislation.

Company Guidance

In the Swire Pacific 2024 Annual Results Analyst Briefing, the company presented a comprehensive overview of its financial performance and strategic investments. Despite a challenging operating environment, Swire Pacific reported a recurring underlying profit of HK$9.3 billion, albeit down 11% from the previous year due to the sale of the Swire Coca-Cola US business. The company increased its dividend by 5%, demonstrating confidence in future growth. Significant investments included a commitment of 67% of Swire Properties' HK$100 billion investment plan, increased stakes in the INDIGO projects in Beijing, and the successful launch of a residential project in Shanghai. The beverage sector saw a decline in overall profit due to the US bottling business's disposal, partially offset by a 56% stake acquisition in ThaiNamthip. Swire Coca-Cola's recurring profit from the Chinese Mainland grew by 11%, driven by price increases. The aviation division, particularly Cathay Pacific, performed well with a 45% growth in recurring profit, attributed to strong demand in passenger travel and cargo. The company maintained a healthy net debt of HK$70 billion with a gearing ratio of 22.1% and emphasized its commitment to sustainability and long-term investments across its business divisions.

Swire Pacific Financial Statement Overview

Summary

Swire Pacific maintains a solid financial position with a robust balance sheet and consistent cash flows. Despite challenges in profitability and revenue declines, strong equity ratios and manageable leverage provide financial stability.

Income Statement

Positive

Swire Pacific's income statement reflects stable performance with a slight decline in revenue from 2023 to 2024. Gross profit margin is strong at around 37.2%, but net profit margin dipped significantly to 5.27% in 2024 from a higher 30.42% in 2023. The EBIT and EBITDA margins have also contracted from 32.29% and 42.80% in 2023 to 5.17% and 17.84% in 2024, indicating decreased operational efficiency.

Balance Sheet

Very Positive

The balance sheet shows a robust equity ratio of 54.20% in 2024, demonstrating financial stability with strong shareholder equity. However, the debt-to-equity ratio increased slightly to 0.37, indicating a manageable level of leverage. The return on equity has dropped significantly from 10.76% in 2023 to 1.67% in 2024, reflecting lower profitability.

Cash Flow

Positive

Operating cash flow remains healthy at over $10 billion, with a consistent free cash flow, though it decreased slightly in 2024. The operating cash flow to net income ratio is strong at 2.42, indicating efficient cash management. However, the free cash flow to net income ratio shows a decline as net income reduced significantly.

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	40.58B	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	96.61B	74.30B	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	5.89B	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 Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.99

Price Trends

50DMA

8.72

Positive

100DMA

8.58

Positive

200DMA

8.44

Positive

Market Momentum

MACD

0.06

Negative

RSI

61.36

Neutral

STOCH

56.89

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWRAY, the sentiment is Positive. The current price of 8.99 is above the 20-day moving average (MA) of 8.73, above the 50-day MA of 8.72, and above the 200-day MA of 8.44, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 56.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWRAY.

Swire Pacific Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	80 Outperform	$151.22B	27.03	33.56%	1.91%	6.30%	0.81%
VMI	79 Outperform	$6.63B	19.57	22.84%	0.82%	-0.57%	116.12%
SWRAY	75 Outperform	$11.29B	22.93	1.64%	6.11%	-13.25%	-84.66%
GFF	74 Outperform	$3.60B	16.04	110.90%	0.94%	-3.38%	26.22%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
MMM	65 Neutral	$84.27B	19.78	94.75%	1.85%	-24.93%	―
IEP	48 Neutral	$5.11B	―	-26.60%	21.37%	-11.56%	-44.04%

* Industrials Sector Average

Performance Comparison

SWRAY

Swire Pacific

8.99

0.55

6.52%

MMM

159.04

57.23

56.21%

GFF

Griffon

77.53

9.14

13.36%

HON

Honeywell International

238.37

28.18

13.41%

IEP

Icahn Enterprises

9.37

-4.63

-33.07%

VMI

Valmont

336.24

60.14

21.78%

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: Jul 03, 2025