Swire Pacific Limited Class B (0087) AI Stock Analysis

Swire Pacific Limited Class B

(HKEX:0087)

Select Model

Rating:74Outperform

Price Target:HKD 16.50▲(9.93% Upside)

Action:reiterated

Date:08/06/26

The score is driven mainly by strong recent earnings-call momentum and a stable balance sheet, which are offset by volatile profitability and a rich valuation. Technicals remain supportive, but overbought signals cap the upside.

Positive Factors

Balance sheet strength and liquidityLower 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 profitabilityMaterial 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.

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

Market Cap: HKD 106.67B
Dividend Yield: 5.29%
Average Volume (3M): 882.74K
Price to Earnings (P/E): 16.3
Beta (1Y): 0.52
Revenue Growth: 6.76%
EPS Growth: 618.77%
Country: Hong Kong
Employees: 92,000
Sector: Industrials
Sector Strength: 63
Industry: Conglomerates

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 China,...

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. 1)...

Swire Pacific Limited Class B Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q2-2026)|% Change Since:2.86%|Next Earnings Date:Mar 10, 2027

Earnings Call SentimentPositive

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.

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

Balance sheet strength is the main positive, with moderate leverage and a large equity base. Cash flow is solid, but recent profitability has been volatile, with net margins sharply weaker in 2025 despite stable revenue growth.

Income Statement

72Positive

Balance Sheet

81Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	94.14B	90.47B	81.97B	94.82B	91.17B	90.80B
Gross Profit	33.94B	33.74B	30.46B	35.15B	34.19B	35.28B
EBITDA	15.94B	15.98B	14.62B	35.57B	16.07B	16.41B
Net Income	8.89B	2.94B	4.32B	28.85B	4.20B	5.12B
Balance Sheet
Total Assets	482.04B	476.41B	476.56B	447.75B	434.77B	436.32B
Cash, Cash Equivalents and Short-Term Investments	22.25B	23.17B	21.03B	14.08B	11.61B	22.89B
Total Debt	95.14B	98.29B	99.47B	74.90B	74.34B	68.25B
Total Liabilities	158.95B	160.18B	157.89B	122.98B	118.83B	112.15B
Stockholders Equity	266.32B	259.58B	258.30B	268.13B	258.46B	266.95B
Cash Flow
Free Cash Flow	11.00B	8.96B	6.05B	6.32B	4.73B	7.45B
Operating Cash Flow	15.84B	14.55B	10.46B	9.92B	8.16B	11.66B
Investing Cash Flow	942.00M	-1.70B	-14.60B	13.03B	-17.54B	-6.34B
Financing Cash Flow	-21.13B	-12.32B	12.62B	-21.73B	-1.40B	-12.34B

Swire Pacific Limited Class B Technical Analysis

Technical Analysis SentimentPositive

Last Price15.01

Price Trends

50DMA15.06Positive

100DMA14.28Positive

200DMA13.47Positive

Market Momentum

MACD0.05Positive

RSI49.95Neutral

STOCH28.40Neutral

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 15.01 is below the 20-day moving average (MA) of 15.12, below the 50-day MA of 15.06, and above the 200-day MA of 13.47, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 28.40 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

HK:0087 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:0087	74Outperform	HKD 125.93B	16.32	3.38%	5.29%	6.76%	618.77%
HK:0267	73Outperform	HKD 357.81B	5.23	8.21%	7.74%	12.61%	10.92%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:0363	62Neutral	HKD 14.58B	7.17	4.00%	8.35%	-28.06%	-23.13%
HK:0392	61Neutral	HKD 37.79B	6.43	5.76%	5.39%	5.30%	0.81%
HK:0001	59Neutral	HKD 253.55B	6.71	6.62%	3.55%	-2.34%	388.55%
HK:0656	43Neutral	HKD 36.16B	-1.37	-23.63%	0.45%	-1.33%	-409.12%

* Industrials Sector Average

Performance Comparison

HK:0087 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:0087	Swire Pacific Limited Class B	15.11	4.17	38.09%
HK:0392	Beijing Enterprises Holdings	30.04	-2.32	-7.17%
HK:0001	CK Hutchison Holdings	66.20	15.88	31.57%
HK:0267	CITIC	12.30	0.79	6.86%
HK:0656	Fosun International	4.46	-0.45	-9.16%
HK:0363	Shanghai Industrial Holdings	13.41	0.68	5.33%

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-div...

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

Swire Pacific Limited Class B AI Stock Analysis