According to a report, Swire Pacific's traceable profit decreased by 7% to HK$3.91 billion in the initial quarter from HK$4.22 billion in the same period last year. Despite the downbeat earnings report, the stock surged creating a trend continuation momentum.
Swire Pacific Revenue Outlook
The conglomerate's revenues per A share fell to HK$2.74 from HK$2.91, and its revenue per B share dropped to HK$0.55 from HK$0.58 in the previous year. Visible Alpha analysts predicted an EPS of HK$2.88.
Revenue fell to HK$39.6 billion, less than the Visible Alpha median forecast of HK$41.2 billion, a 23% year-over-year decline.
The Hong Kong corporation announced a temporary dividend of HK$1.25 for each A share and HK$0.25 for each B share, which will be paid to shareholders who were registered as of September 13 on October 10.
Swire Pacific Management Forecast
According to Guy Bradley, Chairman of SWIRE, the Aviation Division remained the main driver of the group's underlying earnings in the first half of 2024. CATHAY PAC AIR (00293. HK) benefited from an increasing need for travel and cargo amenities, the ongoing improvement of line-up maintenance, and the rise in engine revamps at the HAECO group.
While the Group's Property Division did well despite growing challenges, the Beverages Division remained stable.
Swire Pacific Initiated The Share Buyback Program
For a total financial consideration of $2.014 billion, the company acquired 26.38 million A shares and 29.1125 million B shares during the first half of 2024, with a standard price of $65.1 for A shares and $10.2 for B shares.
Swire Properties Limited has approved a HK$1.5 billion stock buy-back program to repurchase business stocks from the free market. The plan, which would use the company's capital and financial resources savings, is contingent upon The Stock Exchange of Hong Kong Limited approving a waiver for specific listing requirements. Since Swire Pacific owns a sizable portion of Swire Properties, shareholders are advised to exercise caution while dealing with Swire Pacific shares.
Swire Pacific Key Metric: Dividend Payout Ratio
The dividend payout ratio reveals the percentage of profits that the business gives out as dividends. A smaller ratio indicates that the business keeps a sizable portion of its earnings, guaranteeing cash flow for unanticipated downturns and future growth. The dividend payout ratio of Swire Pacific Ltd. as of December 31, 2023, is 0.18.
The profitability rank of Swire Pacific Limited provides insight into the company's revenue strength compared to its industry peers. As of 2023-12-31, analysts gave Swire Pacific Ltd.'s sustainability a 6 out of 10, indicating fair profitability. Of the last ten years, the corporation has declared net profit in nine of them.
Swire Pacific Technical Analysis
In the daily chart of Swire Pacific, the ongoing buying momentum is visible as the current price hovers above the dynamic 200 day Simple Moving Average. Moreover, the recent downside pressure below the 50 day EMA with an immediate rebound suggests an additional bullish pressure.
In the broader context, the bullish momentum is initiated from the 48.55 level from where a significant price surge is seen. After setting a top at the 74.00 level no sufficient downside pressure is visible. Therefore, the primary outlook for this stock could be to look for long trades as long as the 200-day SMA is protected.
Based on this outlook, a bullish rebound is seen from the 64.70 bottom, which could increase the buying pressure towards the 79.80 Fibonacci Extension level. However, a failure to break above the 74.00 high could limit the gain by forming an extended consolidation.
