UBS: Slight decrease in target price of Swire Properties (00019) to HK$74, rating remains "Neutral"

UBS released a research report stating that Swire Pacific A (00019) had a mid-term underlying profit of 4.7 billion Hong Kong dollars, a 1% decrease year-on-year, which was lower than the bank's expectation of 12%, primarily due to lower-than-expected contributions from CATHAY PAC AIR (00293). The group declared a mid-term dividend of 1.3 Hong Kong dollars, a 4% increase year-on-year, which roughly met expectations. Management reiterated that they prioritize long-term strategic investments and gradual dividends rather than stock buybacks. Future stock buybacks will depend on stock price, debt ratio, and market conditions. The bank stated that they have lowered the company's profit forecast for 2025 to 2027 by 1% to 5% to reflect adjustments in earnings estimates for Cathay Pacific, HAECO, and the beverage business, and slightly adjusted Swire's target price from 75 Hong Kong dollars to 74 Hong Kong dollars, with a "Neutral" rating.