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<Research>UBS: SWIRE PACIFIC A (00019.HK) Div. Growth Unexpected w/ Mid-single-digit Div. Growth per Annum Forecasted
Recommend 4 Positive 8 Negative 6 |
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Swire Group's 2025 recurring underlying profit rose by 5% YoY to $9.8 billion, 4% below UBS' forecast, mainly due to lower-than-expected contribution from the beverage business, UBS issued a research report saying. However, the Company announced that SWIRE PACIFIC A (00019.HK)'s full-year DPS will hike by 13% YoY to $3.8, which was unexpected by the broker, implying a payout ratio of 53% on recurring underlying profit, compared to 51% for 2024. During the analyst briefing, management reiterated a progressive dividend policy based on the recovery of the aviation business over the past 5 years, projecting that the payout ratio will remain above 50% of recurring underlying profit, with a mid-single digit DPS incline per annum. Benefiting from the inclusion of the Thailand and Laos beverage business results in the financial statements from October 2024, the underlying EBITDA grew by 8% YoY; dividend income from joint ventures and associates rose by 3%, mainly reflecting the dividend distribution of CATHAY PAC AIR (00293.HK). Therefore, UBS currently rated SWIRE PACIFIC A at Neutral, with a target price of $72.7. AASTOCKS Financial News Website: www.aastocks.com |
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