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.
