GO
| HSI1 | 25,937.49 | +269.46 | 240.28B |
| HSCEI1 | 8,621.84 | +90.26 | 59.11B |
| Back Zoom + Zoom - Block Traded | |
|
2026-08-10 12:04:06 G Sachs issued a research report stating that SWIREPROPERTIES (01972.HK)'s recurring underlying net profit for 1H26, excluding gains from disposal of non-core investment properties and fair value gains from investment property revaluation, rose 36% YoY to HKD4.661 billion, beating both the broker's and market expectations. The outperformance was mainly driven by HKD1.2 billion in development property profit recorded from the disposal of two residential properties at 6 Deep Water Bay Road. The broker maintained its Buy rating and slightly lowered its 12-month TP from HKD30.7 to HKD30.3, based on an unchanged 40% discount to net asset value. During the period, SWIREPROPERTIES' total revenue rose 8% YoY to HKD9.413 billion. Total rental income increased 2% YoY to HKD6.625 billion, improving from YoY declines of 4% and 2% in 2H25 and 1H25 respectively, benefiting from the strong performance of its Mainland China portfolio. Among them, retail properties rose 13% YoY while office properties increased 4% YoY. In Hong Kong, despite continued negative rental reversions in the office segment, rental contribution was flat YoY, improving from declines of 4% and 2% in 1H25 and 2H25 respectively. Benefiting from increased inbound visitors, the hotel business turned profitable and recorded a net profit of HKD5 million, compared with a loss of HKD45 million in the same period last year. G Sachs noted that the group's interim dividend for 1H26 rose 6% YoY to HKD0.37 per share, in line with its commitment to annual mid-single-digit dividend growth. Net gearing remained broadly stable at 14.8%. The group continued to advance its HKD100 billion long-term investment plan, with identified projects involving total capital commitments of approximately HKD69 billion, including HKD46 billion in China, HKD13 billion in Hong Kong and HKD10 billion in property trading operations. In Mainland China, benefiting from the completion of multiple asset enhancement projects, tenant sales at its shopping malls rose 23% YoY. Tenant sales at Taikoo Li Sanlitun in Beijing surged 63% YoY, supported by the upgrade of major brand portfolios in the North Area at the end of last year and the opening of Hermes' global flagship store in April. Sales at HKRI Taikoo Hui in Shanghai jumped 82% YoY. For Hong Kong retail properties, Pacific Place and Citygate Outlets recorded tenant sales growth of 15% and 16% respectively. Management remained positive on the business outlook, expecting continued strength in Mainland China retail properties, narrowing negative rental reversions for Hong Kong offices, and a return to positive territory by early next year. In response to property sales and leasing trends this year, G Sachs slightly adjusted its core net profit forecasts for 2026 to 2028 by negative 2% to 0%. It maintained the Buy rating, believing the group has multiple levers to sustain mid-single-digit dividend growth. The valuation is considered undemanding, with the current share price implying an approximately 52% discount to net asset value, a price-to-book ratio of 0.4x and a dividend yield of 4.9%. (ad/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |