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Swire Pacific Limited Class B (HK:0087)
:0087
Hong Kong Market
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Swire Pacific Limited Class B (0087) AI Stock Analysis

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HK:0087

Swire Pacific Limited Class B

(0087)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
HK$16.50
â–²(41.39% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid overall financial footing (strong balance sheet, positive and improving cash flows) and a very upbeat earnings call showing broad-based profit momentum and lower gearing. Technicals are supportive with strong uptrend signals, while the main offsets are earnings volatility in the financial history and a high P/E despite an attractive dividend yield.
Positive Factors
Balance sheet strength and liquidity
Lower net gearing and a sizeable proportion of fixed‑rate debt materially reduce refinancing and interest‑rate sensitivity. For a capital‑intensive conglomerate this enhances financial flexibility to fund projects, sustain dividends and absorb cyclical earnings swings over the medium term.
Negative Factors
Earnings volatility and inconsistent profitability
Material swings in net income reduce earnings predictability and complicate capital allocation. While operating margins have been stable, episodic nonrecurring items and cyclical swings (loss in 2020, spike 2023) mean dividend and return forecasts remain sensitive to timing of property profits and one‑offs.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength and liquidity
Lower net gearing and a sizeable proportion of fixed‑rate debt materially reduce refinancing and interest‑rate sensitivity. For a capital‑intensive conglomerate this enhances financial flexibility to fund projects, sustain dividends and absorb cyclical earnings swings over the medium term.
Read all positive factors

Swire Pacific Limited Class B (0087) vs. iShares MSCI Hong Kong ETF (EWH)

Swire Pacific Limited Class B Business Overview & Revenue Model

Company Description
Founded in Central, Hong Kong, in 1816, Swire Pacific Limited operates as a major conglomerate with diverse interests in property, aviation, beverages, marine, and trading and industrial sectors. Its extensive reach covers Hong Kong, Mainland Chin...
How the Company Makes Money
Swire Pacific makes money primarily through (1) property operations and development, (2) beverage manufacturing, distribution and sales, (3) returns from its aviation-related investments, and (4) earnings from its trading & industrial activities. ...

Swire Pacific Limited Class B Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Mar 11, 2027
Earnings Call Sentiment Positive
The call communicated a strongly positive operating and financial performance: record underlying and recurring profits, broad-based divisional gains (property, beverages, aviation), large ongoing strategic investments, reduced gearing and an increased interim dividend. These positives are tempered by notable headwinds—commodity and energy price volatility (driven by geopolitical tensions) pressuring margins, specific ASEAN beverage market softness and short-term aviation cost impacts. Management emphasized active balance-sheet and cost management, ongoing capital deployment into high‑priority areas, and sustainability progress, which supports confidence in medium‑term prospects.
Positive Updates
Record High Underlying and Recurring Profits
Underlying profit increased 43% year-on-year to HKD 7.8 billion; recurring underlying profit for the first half was HKD 7.0 billion, up 48% versus prior year (both figures cited by management).
Negative Updates
Input Cost Inflation and Commodity Volatility
Rising oil and aluminum prices driven by geopolitical tensions (Middle East conflict) are a headwind across beverages and aviation. Management flagged ongoing margin pressure, particularly in Southeast Asia beverages, and second-half cost pressure despite some first-half insulation via advance purchases.
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Q2-2026 Updates
Negative
Record High Underlying and Recurring Profits
Underlying profit increased 43% year-on-year to HKD 7.8 billion; recurring underlying profit for the first half was HKD 7.0 billion, up 48% versus prior year (both figures cited by management).
Read all positive updates
Company Guidance
The call guided that Swire delivered a very strong first half with underlying profit up 43% to HKD 7.8 billion and recurring underlying profit reported up 48% to about HKD 7.0 billion, driven across divisions (Property RUP +37%, Beverages +5%, Aviation +39%); management flagged record‑level capital investment (the HKD 100 billion property plan ~70% committed with seven Mainland projects underway), a CNY/RMB 12 billion Mainland beverages investment (two new plants adding ~10% China capacity with >20 lines; Hainan plant due end‑2027), and Cathay Group’s HKD 150 billion plan (targeting +150 aircraft and 150 destinations over 10 years; capacity +11.8%); liquidity/financial metrics included gearing down to 19.3%, net debt down ~4%, weighted‑average cost of debt 3.4% with 75% fixed‑rate borrowings, refinancing slid toward 2031–2032, and non‑recurring items of HKD 309m/ HKD 434m (this half) versus HKD 833m in 2025 — the board increased the interim dividend 15% to HKD 1.50 per A share.

Swire Pacific Limited Class B Financial Statement Overview

Summary
Fundamentals are sound but not consistently strong: revenues and gross margins are relatively steady, the balance sheet is solid with moderate leverage, and cash flows are positive with recent improvement. The key drag is volatile net income (including a loss in 2020 and an outsized 2023 followed by normalization), which reduces earnings visibility.
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue94.14B90.47B81.97B94.82B91.17B90.80B
Gross Profit33.94B33.74B30.46B35.15B34.19B35.28B
EBITDA15.26B14.54B14.62B35.57B16.07B16.41B
Net Income8.89B2.94B4.32B28.85B4.20B5.12B
Balance Sheet
Total Assets482.04B476.41B476.56B447.75B434.77B436.32B
Cash, Cash Equivalents and Short-Term Investments22.25B23.17B21.03B14.08B11.61B22.89B
Total Debt95.14B98.29B99.47B74.90B74.34B68.25B
Total Liabilities158.95B160.18B157.89B122.98B118.83B112.15B
Stockholders Equity266.32B259.58B258.30B268.13B258.46B266.95B
Cash Flow
Free Cash Flow11.00B8.96B6.05B6.32B4.73B7.45B
Operating Cash Flow15.84B14.55B10.46B9.92B8.16B11.66B
Investing Cash Flow942.00M-1.70B-14.60B13.03B-17.54B-6.34B
Financing Cash Flow-21.13B-12.32B12.62B-21.73B-1.40B-12.34B

Swire Pacific Limited Class B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.67
Price Trends
50DMA
14.37
Positive
100DMA
13.84
Positive
200DMA
12.98
Positive
Market Momentum
MACD
0.21
Positive
RSI
58.44
Neutral
STOCH
56.55
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 15.29, below the 50-day MA of 14.37, and below the 200-day MA of 12.98, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 56.55 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
71
Outperform
HK$126.99B16.523.38%5.14%6.76%618.77%
64
Neutral
HK$15.11B7.444.00%6.44%-28.06%-23.13%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
HK$39.15B6.815.76%5.09%5.30%0.81%
59
Neutral
HK$265.23B7.036.62%3.33%-2.34%388.55%
55
Neutral
HK$42.20B-1.59-23.63%0.38%-1.33%-409.12%
48
Neutral
HK$395.63B5.758.21%4.90%12.61%10.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0087
Swire Pacific Limited Class B
15.55
4.28
37.94%
HK:0392
Beijing Enterprises Holdings
31.80
-0.69
-2.11%
HK:0001
CK Hutchison Holdings
69.35
19.56
39.28%
HK:0267
CITIC
13.52
2.24
19.88%
HK:0656
Fosun International
5.11
-0.44
-7.93%
HK:0363
Shanghai Industrial Holdings
13.92
0.58
4.33%

Swire Pacific Limited Class B Corporate Events

Swire Pacific Declares First Interim Dividend for 2026
Aug 6, 2026
Swire Pacific Limited has declared a first interim ordinary dividend of HKD 0.30 per share for the financial year ending 31 December 2026, based on its results for the period to 30 June 2026. The dividend, payable in Hong Kong dollars, will go ex-...
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: Aug 06, 2026