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Swire Pacific Limited (SWRAY)
OTHER OTC:SWRAY
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Swire Pacific
(OTC:SWRAY)
75Outperform
Swire Pacific (SWRAY) vs. S&P 500 (SPY)
Market Cap
$10.96B
Dividend Yield4.36%
Average Volume (3M)15.27K
Price to Earnings (P/E)22.9
Beta (1Y)0.23
Revenue Growth-13.25%
EPS Growth-84.66%
CountryUS
Employees87,000
SectorIndustrials
Sector Strength90
IndustryConglomerates
Share Statistics
EPS (TTM)0.04
Shares Outstanding781,489,000
10 Day Avg. Volume0
30 Day Avg. Volume15,265
Financial Highlights & Ratios
PEG Ratio-4.07
Price to Book (P/B)0.37
Price to Sales (P/S)0.00
P/FCF Ratio15.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
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 diverse portfolio of businesses. The property division earns money from rental income and property sales, particularly in Hong Kong and Mainland China. The aviation sector, centered around Cathay Pacific, generates income from passenger and cargo services. Its beverages segment, in partnership with The Coca-Cola Company, produces revenue through the manufacture, distribution, and sale of non-alcoholic beverages across various Asian markets. The marine services division contributes by offering offshore support services, while the trading & industrial segment includes a range of activities from automotive trading to manufacturing and distribution of various products. Strategic partnerships and joint ventures, particularly in the aviation and beverages sectors, also play a critical role in revenue generation.
Swire Pacific Financial Statement Overview
Summary
Swire Pacific demonstrates strong financial performance with solid revenue growth, high net profit and gross profit margins, and improved EBIT margin. The balance sheet is stable with a good equity ratio and moderate debt levels. Cash flow management is positive, with substantial free cash flow growth. The company is well-positioned within its industry, despite a slightly lower EBITDA margin compared to peers.Income Statement
The company has shown a solid revenue growth rate of 4.01% from 2022 to 2023, with a strong net profit margin of 30.42% and a gross profit margin of 37.06% in 2023. The EBIT margin improved significantly to 32.29% from the previous year's 12.97%. However, the EBITDA margin is slightly behind at 42.79% compared to its peers. Overall, the profitability and growth metrics indicate a robust financial performance.85
Very Positive
Balance Sheet
Swire Pacific's balance sheet exhibits stability with an equity ratio of 59.90%, reflecting a strong equity base. The debt-to-equity ratio is relatively moderate at 0.28, indicating manageable leverage. Return on equity (ROE) is high at 10.76%, showcasing efficient use of equity to generate profit. However, the slight increase in total liabilities is a point to monitor.78
Positive
Cash Flow
The company demonstrated positive cash flow management with a free cash flow growth rate of 33.60% from 2022 to 2023. The operating cash flow to net income ratio is 0.34, suggesting a healthy conversion of net income into cash. The free cash flow to net income ratio of 0.22 indicates that a significant portion of net income is retained as free cash flow, which is favorable for reinvestment and debt repayment.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 82.84B | 94.82B | 91.17B | 90.80B | 80.03B | 85.65B | Gross Profit |
| 30.98B | 35.15B | 34.19B | 35.28B | 30.21B | 31.82B | EBIT |
| 9.98B | 30.62B | 11.83B | 12.10B | -3.10B | 13.79B | EBITDA |
| 34.78B | 40.58B | 16.07B | 16.41B | 8.55B | 19.07B | Net Income Common Stockholders |
| 28.55B | 28.85B | 6.27B | 5.12B | -10.10B | 9.01B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.18B | 14.08B | 11.61B | 22.89B | 29.26B | 21.34B | Total Assets |
| 270.57B | 447.75B | 434.77B | 436.32B | 433.11B | 441.40B | Total Debt |
| 43.12B | 74.30B | 73.29B | 66.89B | 73.32B | 73.41B | Net Debt |
| 39.31B | 63.06B | 61.67B | 43.99B | 44.05B | 52.06B | Total Liabilities |
| 61.52B | 122.98B | 118.83B | 112.15B | 113.96B | 111.90B | Stockholders Equity |
| 204.45B | 268.13B | 258.46B | 266.95B | 262.69B | 273.35B |
| Cash Flow | Free Cash Flow | ||||
| 5.61B | 6.32B | 4.73B | 7.45B | 8.46B | 6.02B | Operating Cash Flow |
| 9.49B | 9.92B | 8.16B | 11.66B | 11.46B | 10.54B | Investing Cash Flow |
| 15.00B | 13.03B | -17.54B | -6.34B | 1.73B | 12.37B | Financing Cash Flow |
| -20.16B | -21.73B | -1.40B | -12.34B | -5.69B | -10.55B |
Swire Pacific Technical Analysis
Positive
8.95
Price Trends
8.54
Positive
8.45
Positive
8.28
Positive
Market Momentum
0.16
Negative
65.79
Neutral
93.57
Negative
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 8.95 is above the 20-day moving average (MA) of 8.59, above the 50-day MA of 8.54, and above the 200-day MA of 8.28, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 65.79 is Neutral, neither overbought nor oversold. The STOCH value of 93.57 is Negative, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $14.07B | 23.19 | 28.07% | 0.90% | 4.55% | ― | |
80 Outperform | $10.79B | 30.71 | 21.78% | 0.37% | 7.40% | 168.67% | |
77 Outperform | $10.29B | 9.55 | 138.69% | 1.87% | 6.41% | 49.58% | |
76 Outperform | $11.65B | 29.61 | 7.44% | 2.23% | 3.96% | -17.48% | |
75 Outperform | $10.96B | 22.91 | 1.64% | 4.36% | -13.25% | -84.66% | |
67 Neutral | $5.20B | 313.80 | ― | ― | ― | ||
64 Neutral | $4.38B | 12.03 | 5.25% | 249.91% | 4.11% | -11.02% |
* Industrials Sector Average
Performance Comparison
SWRAY
Swire Pacific
8.95
0.52
6.17%
ACM
Aecom Technology
106.68
16.14
17.83%
CRS
Carpenter Technology
224.52
119.15
113.08%
RTO
Rentokil Initial
23.28
-3.14
-11.88%
LTM
LATAM Airlines Group SA Sponsored ADR
35.25
10.53
42.60%
AMTM
Amentum Holdings, Inc.
21.15
-6.85
-24.46%
Swire Pacific Earnings Call Summary
Earnings Call Date:Mar 13, 2025
(Q4-2024)
| % Change Since: -1.86%|
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.