Citigroup: Raises target price of Swire Pacific A (00019) to HKD 97.5, rated as "buy"

Citigroup released a research report stating that Swire Pacific (00019) is expected to increase its dividend per share by 13% year-on-year in the 2025 fiscal year, surpassing the 5% year-on-year growth in ordinary basic earnings, reflecting management's satisfaction with its progressive dividend policy. Management expects future dividends per share to achieve mid-single-digit growth. Management believes there is room for margin improvement in the beverage business and plans to achieve this goal through revenue growth and packaging for specific channels, as competition from delivery platforms normalizes. The bank has raised Swire Pacific's target price from HK$85 to HK$97.5, maintaining a "buy" rating. With the support of capital recycling efforts, Swire Pacific successfully reduced its debt ratio by 1.5 percentage points year-on-year to 20.6% by the end of 2025. This reflects the latest market value and operating trends of Swire's listed subsidiaries.