Swire Pacific Limited Class B (0087) AI Stock Analysis

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Swire Pacific Limited Class B

(0087)

Select Model

Outperform 74 (OpenAI - 4o)

Rating:74Outperform

Price Target:

HK$13.50

▲(10.66% 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$87.78B

Dividend Yield5.57%

Average Volume (3M)751.92K

Price to Earnings (P/E)13.3

Beta (1Y)0.51

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. Volume610,241

30 Day Avg. Volume751,922

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

HK$13.50

Price Target Upside10.66% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Swire Pacific Limited Class B Business Overview & Revenue Model

Company DescriptionSwire Pacific Limited Class B (0087) is a diversified conglomerate based in Hong Kong, operating across various sectors including property, aviation, beverages, marine services, and trading & industrial businesses. The company owns and manages a range of properties, holds significant stakes in major airlines, and is a prominent player in the beverage industry with bottling rights for leading brands.

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 demonstrates a stable financial foundation with strong equity levels and manageable debt. However, recent declines in profitability and revenue growth, along with fluctuating free cash flow, highlight a need for strategic adjustments to enhance earnings and cash generation. Despite these challenges, the company's solid balance sheet provides a buffer against economic uncertainties.

Income Statement

Positive

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.

Balance Sheet

Very Positive

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.

Cash Flow

Positive

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.

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	35.57B	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	99.47B	74.90B	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	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 Limited Class B Technical Analysis

Technical Analysis Sentiment

Positive

Last Price12.20

Price Trends

50DMA

11.90

Positive

100DMA

11.27

Positive

200DMA

10.70

Positive

Market Momentum

MACD

0.09

Negative

RSI

66.50

Neutral

STOCH

78.71

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 12.2 is above the 20-day moving average (MA) of 11.70, above the 50-day MA of 11.90, and above the 200-day MA of 10.70, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 66.50 is Neutral, neither overbought nor oversold. The STOCH value of 78.71 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0392	75 Outperform	42.57B	7.34	0.00%	4.79%	0.00%	0.00%
0087	74 Outperform	HK$87.78B	13.30	0.47%	5.57%	6.44%	-95.37%
0267	72 Outperform	352.28B	5.70	7.68%	5.07%	2.45%	-0.36%
0001	71 Outperform	193.61B	25.03	3.20%	4.40%	1.93%	-65.62%
0019	63 Neutral	87.78B	74.08	1.67%	5.00%	6.44%	-95.37%
0656	57 Neutral	46.03B	-9.60	-3.68%	0.35%	-8.93%	-698.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

HK:0087

Swire Pacific Limited Class B

12.20

2.87

30.76%

BJINF

Beijing Enterprises Holdings

3.98

0.72

22.09%

CKHUF

CK Hutchison Holdings

6.59

1.15

21.14%

CTPCF

CITIC

1.58

0.63

66.32%

FOSUF

Fosun International

0.50

-0.02

-3.85%

SWRAF

Swire Pacific

8.73

0.98

12.65%

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.Date of analysis: Sep 06, 2025