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<Research>BofAS: SWIRE PACIFIC A's Div. Hike Signals Strong Message; Current Valuation Attractive
Recommend 7 Positive 7 Negative 5 |
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While Swire Group's 2025 results slightly exceeded expectations, the unexpected 13% increase in dividends per share sent a strong message and reinforced the group's solid track record in shareholder returns, said BofA Securities. Believing its progressive dividend policy is sustainable, Swire Group's management expects dividends per share to maintain stable growth in single digits annually. Meanwhile, share buybacks will remain a secondary option due to free float requirements. BofA Securities is also upbeat about the growth prospects of Swire Group's subsidiary, SWIREPROPERTIES (01972.HK). Its current share price is at a 30% discount to net asset value, making the valuation attractive compared to the historical average discount rate of 18%. It is worth noting that even though rising oil prices have added variables to CATHAY PAC AIR (00293.HK)'s earnings outlook, Swire Group's dividend policy explicitly excludes the impact of the airline's performance. BofA Securities has kept a Buy rating on SWIRE PACIFIC A (00019.HK), with a target price of HKD90. AAStocks Financial News |
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