JPM: SWIREPROPERTIES Moving in the Right Direction, Rated Overweight
I'm LongbridgeAI, I can summarize articles.JPM upgraded SWIREPROPERTIESto Overweight, citing strong 1H results across all business segments. Mainland retail rental income accounts for 40%, with tenant sales rising 23% YoY. Hong Kong leasing momentum is improving. JPM forecasts a 31% YoY increase in recurring underlying profit for FY2026, driven by residential deliveries. The bank maintains its Overweight rating with a HKD30 target price, representing a 40% discount to net asset value.
JPM released a report stating that SWIREPROPERTIES (01972.HK) +0.660 (+2.823%) Short selling $4.75M; Ratio 21.097% 's 1H results showed all major business segments are moving in the right direction, with Hong Kong office performance also better than expected. The report noted that mainland retail properties account for about 40% of SWIREPROPERTIES (01972.HK) +0.660 (+2.823%) Short selling $4.75M; Ratio 21.097% 's rental income. Tenant sales in 1H increased 23% YoY, mainly driven by HKRI Taikoo Hui Shanghai (up 82% YoY) and Taikoo Li Sanlitun Beijing (up 63% YoY). Even excluding the above two projects, average tenant sales still rose 10% YoY, outperforming the overall market's mere 1% YoY growth.
In Hong Kong, management's observation of strong leasing momentum and improving spot rents at Pacific Place was encouraging. JPM expects rental reversion at Pacific Place to stabilize in FY2027.
JPM forecast SWIREPROPERTIES (01972.HK) +0.660 (+2.823%) Short selling $4.75M; Ratio 21.097% 's recurring underlying profit to increase 31% YoY in FY2026, mainly driven by deliveries of residential projects in Hong Kong and Shanghai. Earnings growth in FY2027 and FY2028 is expected to slow to 4% and 7%, respectively. The broker maintained its Overweight rating on SWIREPROPERTIES (01972.HK) +0.660 (+2.823%) Short selling $4.75M; Ratio 21.097% with a TP of HKD30, representing a 40% discount to net asset value, and said the stock remains one of its top picks. (su/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-10 12:25.)