HSBC: Downgrade of the rating of Swire Pacific Limited to "In line with the market" with a lack of catalysts in the short term.

Morgan Stanley released a research report stating that based on Cathay Pacific Airways turning losses into profits, the earnings per share forecasts for Swire Pacific Ltd. in 2025-2027 have been raised by 6%, 4%, and 3% respectively. However, considering the intensification of global trade frictions, it is expected that Cathay Pacific's profit margin may peak, and the positive momentum for Swire's profit recovery will temporarily come to an end. Morgan Stanley estimates that Swire's dividend payout in 2025 will increase by 4%, with the annual dividend yield forecast reducing to 5%, lower than the industry average. Although the valuation level is still attractive, the lack of short-term share price catalysts has led to the downgrade of the investment rating from "hold" to "market perform," with the target price also being reduced from HK$75 to HK$71.