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Swire Pacific Limited (SWRAY)
OTHER OTC:SWRAY
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Swire Pacific (SWRAY) AI Stock Analysis

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SWRAY

Swire Pacific

(OTC:SWRAY)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
$14.00
â–²(4.40% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by solid financial resilience (strong balance sheet and consistently positive, improving cash flows) and supportive technical momentum (price above key moving averages with positive MACD). Offsetting these positives are an expensive valuation (high P/E) and a history of volatile profitability, though the latest earnings call was broadly constructive with stronger underlying profits, a higher interim dividend, and favorable H2 momentum guidance despite manageable cost headwinds.
Positive Factors
Balance Sheet Strength
Low and improving leverage gives Swire Pacific financial flexibility to fund property, beverage and aviation investments while limiting exposure to refinancing and interest-rate pressure.
Negative Factors
Volatile Earnings Quality
Large swings in reported profitability make underlying earnings power harder to forecast and reduce confidence that current improvements will translate into consistently durable margins and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Low and improving leverage gives Swire Pacific financial flexibility to fund property, beverage and aviation investments while limiting exposure to refinancing and interest-rate pressure.
Read all positive factors

Swire Pacific (SWRAY) vs. SPDR S&P 500 ETF (SPY)

Swire Pacific Business Overview & Revenue Model

Company Description
Swire Pacific Limited is a diverse conglomerate with operations spanning property, aviation, beverages, marine, and trading & industrial sectors. Its business activities extend across Hong Kong, Mainland China, other parts of Asia, the United Stat...
How the Company Makes Money
Swire Pacific makes money primarily through (1) property income and property-related gains, (2) beverage manufacturing and distribution profits, and (3) aviation-related earnings from subsidiaries and equity-accounted investments. 1) Property: Th...

Swire Pacific 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 highlights a strong first half with record underlying and recurring profits, broad-based recovery in property, beverages (notably Mainland China), and a robust aviation performance led by Cathay and HAECO. The balance sheet is healthier (lower gearing, lower cost of debt) enabling record capital investment and a 15% increase in the interim dividend. Key challenges are input-cost inflation (aluminum and energy) affecting beverage margins—particularly in Southeast Asia—some regional profit volatility in ASEAN bottlers, and near-term aviation fuel cost volatility. On balance, the positive operational and financial momentum substantially outweigh the manageable headwinds.
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% year-on-year, reflecting broad-based improvement across divisions.
Negative Updates
Input-cost and margin pressure in beverages (ASEAN focus)
Elevated aluminum and energy prices driven by Middle East conflict are a headwind to bottler margins; management notes higher input cost inflation particularly in Southeast Asia and expects cost pressure to persist into H2 despite some H1 insulation from advanced purchases.
Read all updates
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% year-on-year, reflecting broad-based improvement across divisions.
Read all positive updates
Company Guidance
Management guided that momentum should continue into H2 as consumer sentiment improves and investments remain at record levels: underlying profit rose 43% y/y to HKD 7.8bn (recurring underlying profit up ~48% to ~HKD 7.0bn), interim dividend was increased 15% to HKD 1.50 per A share, and recurring attributable profit for Swire Coca‑Cola was HKD 907m (+5%) with Mainland profit HKD 727m (+24%), Vietnam/Cambodia HKD 98m (‑13%), Thailand/Laos HKD 95m (‑10%) and Hong Kong HKD 58m (+5%); divisional RUPs were property +37%, beverages +5% and aviation +39%; balance‑sheet metrics include gearing 19.3%, debt down 4%, weighted average cost of debt 3.4% and 75% fixed‑rate borrowings; capital plans include the HKD 100bn property programme ~70% committed with 7 Mainland projects, RMB/CNY 12bn beverage investment (two new Mainland plants adding ~10% capacity), Cathay group HKD 150bn capex with 150 aircraft/150 destinations targeted over 10 years, while management warned of ongoing oil and aluminium cost headwinds and kept share buyback secondary to progressive dividend policy.

Swire Pacific Financial Statement Overview

Summary
Overall fundamentals are resilient, led by a strong balance sheet (high equity base, moderating leverage and meaningfully lower debt by 2025) and consistently positive operating cash flow with improving free cash flow in 2025. The main constraint is uneven earnings power: revenue and net income have been volatile, with a sharp 2024 revenue decline and a material step-down in profitability after an unusually strong 2023.
Income Statement
62
Positive
Balance Sheet
80
Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue94.16B90.31B81.97B94.82B91.17B90.80B
Gross Profit33.95B33.68B30.46B35.15B34.19B35.28B
EBITDA16.22B15.47B14.62B40.58B16.07B16.41B
Net Income8.90B2.93B4.32B28.85B4.20B5.12B
Balance Sheet
Total Assets482.09B476.37B476.56B447.75B434.77B436.32B
Cash, Cash Equivalents and Short-Term Investments22.25B23.17B21.03B14.08B11.61B22.89B
Total Debt95.15B93.56B96.61B74.90B73.29B66.89B
Total Liabilities158.97B160.16B157.89B122.98B118.83B112.15B
Stockholders Equity266.35B259.55B258.30B268.13B258.46B266.95B
Cash Flow
Free Cash Flow11.00B8.94B5.89B6.32B4.73B7.45B
Operating Cash Flow15.84B14.53B10.46B9.92B8.16B11.66B
Investing Cash Flow942.05M-1.69B-14.60B13.03B-17.54B-6.34B
Financing Cash Flow-21.13B-12.30B12.62B-21.73B-1.40B-12.34B

Swire Pacific Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$16.06B16.003.38%3.93%6.45%609.94%
72
Outperform
$68.36B8.5641.71%4.05%-2.41%53.63%
71
Outperform
$3.96B6.0812.09%0.19%8.17%361.79%
67
Neutral
$840.32M5.7016.63%5.22%-10.68%46.63%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
55
Neutral
$866.72M-5.50-21.01%2.49%8.37%51.01%
47
Neutral
$5.79B-4.08-18.05%0.80%97.51%34.53%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SWRAY
Swire Pacific
13.31
5.09
61.97%
CODI
Compass Diversified Holdings
11.38
3.85
51.13%
CRESY
Cresud Sociedad
11.19
1.75
18.50%
HON
Honeywell International
220.67
6.36
2.97%
SEB
Seaboard
4,026.77
259.53
6.89%
BBUC
Brookfield Business Corp. Class A
28.19
-6.33
-18.33%
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