Citigroup raises SWIRE PROPERTIES target price to HKD 97.5 with a "Buy" rating

Citi published a research report indicating that Swire Pacific A (00019.HK) will see a 13% year-on-year increase in its earnings per share dividend for the fiscal year 2025, surpassing the 5% year-on-year growth of recurring underlying profit, reflecting management's satisfaction with its progressive dividend policy. Management expects "future" earnings per share dividends to achieve mid-single-digit growth. They believe there is room for margin improvement in the beverage business and plan to achieve this through revenue growth and targeted packaging for specific channels, as competition from delivery platforms normalizes.

Supported by capital cycle efforts, Swire successfully reduced its debt ratio by 1.5 percentage points year-on-year to 20.6% by the end of 2025, reflecting the latest market value and operational trends of Swire's listed subsidiaries.

The bank raised the target price for Swire Pacific A from HKD 85 to HKD 97.5, maintaining a "Buy" rating