UBS: Raises target price for SWIRE PACIFIC A (00019) to 75 Hong Kong dollars, rating upgraded to "Neutral"

UBS releases research report stating that due to the widening of valuation discounts for SWIRE PACIFIC A (00019), improvement in credit indicators next year, and improvement in property and aviation businesses, the company's earnings forecast for 2025-2027 has been raised by 7-11%, the rating has been upgraded from sell to "neutral", and the target price has been raised from HK$59.9 to HK$75. UBS estimates that in the first half of this year, Swire's underlying recurring profit will increase by 12% year-on-year, mainly due to increased contributions from Cathay Pacific and ThaiNamthip, but offset slightly by a decline in property contributions. UBS points out that Swire's performance this year is lagging behind related listed companies, and its valuation discount relative to related listed companies has expanded from 19% in February to the current 31%, close to UBS's target discount rate of 30%. Additionally, UBS believes that the probability of share repurchases will be higher due to improvements in the property business profitability.