Bank of America Securities: SWIRE PROPERTIES (01972) profit growth prospects are stable, maintaining a "buy" rating.

Bank of America Securities released a research report stating that SWIRE PROPERTIES (01972) achieved the expected recurring profit last year, maintaining a "buy" rating on the stock with a target price of HK$29. The bank pointed out that the company's stable profit growth outlook supports the above view, with factors including a strong pipeline of new shopping mall projects and attractive valuation levels, including a 41% discount to net asset value and an expected dividend yield of 4.9% for the current year. Although the ongoing conflict in the Middle East may weaken the strong momentum in the Hong Kong office rental market this year, the reduction in outflow of high-end retail consumption from the mainland may partially offset the impact. The report also cited SWIRE PROPERTIES as saying that the pre-leasing progress of new shopping malls scheduled to open in the mainland in the next two years is encouraging. Management also continues to progress with its plan to sell non-core assets this year, and closely monitors opportunities for issuing Real Estate Investment Trusts (REITs) in the mainland.