Swire Pacific (0019) AI Stock Analysis

• Market Cap: HK$85.44B
• Dividend Yield: 4.78%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.52
• Revenue Growth: -13.56%
• EPS Growth: -84.68%
• Country: HK
• Employees: 87,000
• Sector: Industrials
• Sector Strength: 83
• Industry: Conglomerates
• EPS (TTM): 0.32
• Shares Outstanding: 781,489,000
• 10 Day Avg. Volume: 1,042,782
• 30 Day Avg. Volume: 1,132,144
• PEG Ratio: -0.22
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.02
• 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: HK$72.33
• Price Target Upside: 3.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

Swire Pacific's overall score is driven by stable financial performance with challenges in revenue growth and profitability. The technical analysis suggests mild upward momentum but with caution due to bearish indicators. While the valuation indicates potential overvaluation, a strong dividend yield provides some appeal. Strategic investments and a positive outlook from the earnings call further support the stock's potential, though challenges remain.

Swire Pacific Business Overview & Revenue Model

Company Description

Swire Pacific Limited (0019) is a Hong Kong-based conglomerate with diversified interests across various sectors including property, aviation, beverages, marine services, and trading & industrial. It is part of the larger Swire Group and operates through its five core divisions: Property, Aviation, Beverages, Marine Services, and Trading & Industrial. The company is known for its significant presence in Asia, particularly in Hong Kong and Mainland China, and is involved in the development, ownership, and management of commercial, retail, and residential properties, as well as operating one of the world's largest Coca-Cola bottling networks.

How the Company Makes Money

Swire Pacific generates revenue through its diverse business segments. The Property division earns income from the development, leasing, and management of commercial and residential properties, with key assets including office towers, shopping malls, and luxury apartments, mainly in Hong Kong and Mainland China. The Aviation segment, primarily through its investment in Cathay Pacific Airways, earns money from passenger and cargo air transport services. The Beverages division, as one of the largest Coca-Cola bottlers in Asia, generates revenue from the manufacturing, marketing, and distribution of beverages. The Marine Services division provides offshore support services to the energy industry, while the Trading & Industrial division is involved in a range of activities including the distribution of sports and lifestyle brands, and other industrial operations. Strategic partnerships and joint ventures, particularly in the aviation and property sectors, also significantly contribute to Swire Pacific's earnings.

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.

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.

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.

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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0019, the sentiment is Positive. The current price of 70 is above the 20-day moving average (MA) of 65.29, above the 50-day MA of 65.79, and above the 200-day MA of 64.36, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 68.94 is Neutral, neither overbought nor oversold. The STOCH value of 87.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0019.

Swire Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBA	82 Outperform	£149.45B	9.94	10.33%	6.07%	-3.40%	-7.51%
0011	76 Outperform	$207.05B	11.60	11.23%	6.41%	-2.77%	4.04%
0002	73 Outperform	$170.28B	14.36	11.36%	4.64%	4.35%	76.44%
0083	70 Outperform	$74.57B	19.61	2.17%	7.11%	-30.38%	-43.73%
0003	70 Outperform	$132.49B	23.20	9.72%	4.94%	-2.63%	-5.90%
0019	65 Neutral	HK$85.44B	22.88	1.64%	4.78%	-13.56%	-84.68%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%

Swire Pacific Corporate Events

Swire Properties Reports Stable Q1 2025 Performance and Progress on Key Developments

Swire Properties Limited has released its quarterly operating statement for the first quarter of 2025, highlighting stable occupancy rates in its office and retail properties across Hong Kong, mainland China, and Miami. The report indicates a mixed performance in retail sales, with some locations experiencing growth while others saw a decline. The company is also progressing with several major development projects in mainland China, expected to complete between 2026 and 2027, which could enhance its market position and provide new opportunities for growth.

Swire Pacific Plans Spin-Off and Listing of Beverage Subsidiary on Thai Stock Exchange

Swire Pacific Limited has announced a proposed spin-off and separate listing of its subsidiary, Thainamthip Corporation Public Company Limited (TCPCL), on the Stock Exchange of Thailand. TCPCL, which is engaged in the non-alcoholic ready-to-drink beverage industry in Thailand and Laos, is expected to remain a non-wholly owned subsidiary of Swire Pacific post-listing. The spin-off is subject to regulatory approvals and market conditions, and it is not anticipated to be a notifiable transaction under Hong Kong’s Listing Rules.

Swire Pacific Announces Change of Registered Office

Swire Pacific Limited has announced a change in its registered office location to 31st Floor, One Pacific Place, 88 Queensway, Hong Kong, effective from May 16, 2025. This change is part of the company’s ongoing efforts to optimize its operational infrastructure, potentially enhancing its strategic positioning within the industry.

Swire Pacific Announces 2025 Annual General Meeting Agenda

Swire Pacific Limited has announced its 2025 Annual General Meeting, scheduled for May 15, 2025, in Hong Kong. Key agenda items include the re-election of directors, re-appointment of auditors, and resolutions to authorize share buy-backs and the issuance of additional shares. These actions are designed to enhance corporate governance and provide flexibility in capital management, potentially impacting shareholder value and market positioning.

Swire Pacific Announces Retirement of Independent Director

Swire Pacific Limited announced the retirement of Ms. Lee Wai Mun Rose as an Independent Non-Executive Director, effective after the 2025 Annual General Meeting. Ms. Lee, who joined the board in 2012 and served on the Remuneration Committee, has confirmed no disagreements with the board. The company expressed gratitude for her contributions over the past 12 years.

Swire Pacific Declares Second Interim Dividend for 2024

Swire Pacific Limited announced a second interim dividend of HKD 2.1 per share for the year ending December 31, 2024. The ex-dividend date is set for April 9, 2025, with the payment date scheduled for May 9, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its financial performance and shareholder relations positively.

Swire Pacific Reports Sharp Decline in 2024 Financial Results Amid Market Challenges

Swire Pacific Limited reported a significant decline in its 2024 financial performance, with a notable drop in profit attributable to shareholders by 85% and a 70% reduction in dividends per ‘A’ share. The company’s revenue decreased by 14%, and operating profit fell by 86%, reflecting challenging market conditions and a decrease in the fair value of investment properties. Despite these setbacks, Swire Pacific made progress in sustainability, reducing greenhouse gas emissions by 12% and energy consumption by 16%, indicating a commitment to environmental responsibility.