Lyon: SWIREPROPERTIES (01972) target price raised to 22.2 Hong Kong dollars, with the improved fundamentals expected to support the stock price.

Lyon released a research report stating that SWIRE PROPERTIES (01972) performed better than expected in the first half of the year, based on selling profits and US tax exemptions. Benefiting from factors such as the recovery of the Hong Kong capital market, the number of office leasing inquiries in the first half of the year increased by 30%, and retail sales in China and Hong Kong also accelerated. The bank believes that the retirement of the Chief Financial Officer next year will not affect operations. The target price has been raised from HK$18.3 to HK$22.2, maintaining an "outperform" rating. The bank pointed out that although the company has not announced a second round of share buyback plan, it believes that the improvement in fundamentals, coupled with strong property sales and the completion of investment properties, will accelerate profit growth and support stock prices. The bank has adjusted its profit forecasts for 2025 to 2027 by 6.9% increase, 0.3% decrease, and 1.1% increase respectively, to reflect changes in asset disposal and delivery progress.