Swire Properties
Market Cap
HK$113.3b
Last Updated
2020/07/04 12:36 UTC
Data Sources
Company Financials +
Executive Summary
Swire Properties Limited, together with its subsidiaries, develops, owns, and operates mixed-use, primarily commercial properties in Hong Kong, Mainland China, the United States, and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -13.5% per year for the next 3 years
Snowflake Analysis
Adequate balance sheet second-rate dividend payer.
Share Price & News
How has Swire Properties's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1972 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.2%
1972
5.9%
HK Real Estate
4.1%
HK Market
1 Year Return
-38.8%
1972
-12.3%
HK Real Estate
-4.7%
HK Market
Return vs Industry: 1972 underperformed the Hong Kong Real Estate industry which returned -12.6% over the past year.
Return vs Market: 1972 underperformed the Hong Kong Market which returned -4.9% over the past year.
Shareholder returns
| 1972 | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | 5.9% | 4.1% |
| 30 Day | 4.9% | 7.9% | 5.3% |
| 90 Day | -1.4% | 11.5% | 13.5% |
| 1 Year | -36.4%-38.8% | -7.7%-12.3% | -1.2%-4.7% |
| 3 Year | -20.7%-27.8% | 22.4%7.8% | 7.7%-3.5% |
| 5 Year | -6.3%-19.8% | 43.5%17.7% | 7.2%-10.1% |
Price Volatility Vs. Market
How volatile is Swire Properties's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Should You Worry About Swire Properties Limited's (HKG:1972) CEO Pay?1 month ago | Simply Wall St
If You Had Bought Swire Properties (HKG:1972) Stock A Year Ago, You'd Be Sitting On A 46% Loss, Today2 months ago | Simply Wall St
Is Swire Properties Limited's (HKG:1972) High P/E Ratio A Problem For Investors?Valuation
Is Swire Properties undervalued compared to its fair value and its price relative to the market?
8.44x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 1972 (HK$19.36) is trading above our estimate of fair value (HK$8.47)
Significantly Below Fair Value: 1972 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 1972 is poor value based on its PE Ratio (8.4x) compared to the Real Estate industry average (6.8x).
PE vs Market: 1972 is good value based on its PE Ratio (8.4x) compared to the Hong Kong market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: 1972's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: 1972 is good value based on its PB Ratio (0.4x) compared to the HK Real Estate industry average (0.4x).
Next Steps
Future Growth
How is Swire Properties forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-13.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1972's earnings are forecast to decline over the next 3 years (-13.5% per year).
Earnings vs Market: 1972's earnings are forecast to decline over the next 3 years (-13.5% per year).
High Growth Earnings: 1972's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 1972's revenue is expected to decline over the next 3 years (-0.05% per year).
High Growth Revenue: 1972's revenue is forecast to decline over the next 3 years (-0.05% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1972's Return on Equity is forecast to be low in 3 years time (2.9%).
Next Steps
Past Performance
How has Swire Properties performed over the past 5 years?
15.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1972 has a large one-off gain of HK$6.1B impacting its December 31 2009 financial results.
Growing Profit Margin: 1972's current net profit margins (85.8%) are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: 1972's earnings have grown by 15.9% per year over the past 5 years.
Accelerating Growth: 1972's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1972 had negative earnings growth (-53.2%) over the past year, making it difficult to compare to the Real Estate industry average (3.7%).
Return on Equity
High ROE: 1972's Return on Equity (4.7%) is considered low.
Next Steps
Financial Health
How is Swire Properties's financial position?
Financial Position Analysis
Short Term Liabilities: 1972's short term assets (HK$20.6B) exceed its short term liabilities (HK$15.5B).
Long Term Liabilities: 1972's short term assets (HK$20.6B) do not cover its long term liabilities (HK$33.5B).
Debt to Equity History and Analysis
Debt Level: 1972's debt to equity ratio (10.3%) is considered satisfactory.
Reducing Debt: 1972's debt to equity ratio has reduced from 18% to 10.3% over the past 5 years.
Debt Coverage: 1972's debt is not well covered by operating cash flow (14.7%).
Interest Coverage: 1972's interest payments on its debt are well covered by EBIT (26.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Swire Properties's current dividend yield, its reliability and sustainability?
4.55%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1972's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).
High Dividend: 1972's dividend (4.55%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.72%).
Stability and Growth of Payments
Stable Dividend: 1972 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1972's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.4%), 1972's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1972's dividends in 3 years are forecast to be covered by earnings (64.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Guy Martin Coutts Bradley (54yo)
5.5yrs
Tenure
HK$16,463,000
Compensation
Mr. Guy Martin Coutts Bradley has been Chief Executive Officer of Swire Properties Limited since January 1, 2015 and has been its Executive Director since January 1, 2008. Mr. Bradley has been the Chief Op ...
CEO Compensation Analysis
Compensation vs Market: Guy Martin Coutts's total compensation ($USD2.12M) is above average for companies of similar size in the Hong Kong market ($USD817.01K).
Compensation vs Earnings: Guy Martin Coutts's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2yrs | HK$1.90m | no data | |
| CEO & Executive Director | 5.5yrs | HK$16.46m | no data | |
| Finance Director & Executive Director | 2.75yrs | HK$6.88m | no data | |
| Director of Marketing | 0.25yr | no data | no data | |
| Director of Business Development | no data | no data | no data | |
| Director Human Resources | 2.5yrs | no data | no data | |
| Deputy Chairman of Swire Hotels | 0.50yr | no data | no data | |
| Managing Director of Swire Hotels | 0.083yr | no data | no data | |
| Company Secretary | 0.50yr | no data | no data | |
| Director of Development & Valuations | 10.5yrs | no data | no data |
1.5yrs
Average Tenure
53yo
Average Age
Experienced Management: 1972's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2yrs | HK$1.90m | no data | |
| CEO & Executive Director | 5.5yrs | HK$16.46m | no data | |
| Finance Director & Executive Director | 2.75yrs | HK$6.88m | no data | |
| Independent Non-Executive Director | 3.33yrs | HK$761.00k | 0.000020% HK$22.7k | |
| Non-Executive Director | 2.17yrs | no data | no data | |
| Independent Non-Executive Director | 3.17yrs | HK$843.00k | no data | |
| Non-Executive Director | 9.83yrs | no data | no data | |
| Non-Executive Director | 7yrs | HK$575.00k | no data | |
| Independent Non-Executive Director | 7.58yrs | HK$650.00k | no data | |
| Non-Executive Director | 5.5yrs | no data | no data |
4.4yrs
Average Tenure
54yo
Average Age
Experienced Board: 1972's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Swire Properties Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Swire Properties Limited
- Ticker: 1972
- Exchange: SEHK
- Founded: 1972
- Industry: Real Estate Operating Companies
- Sector: Real Estate
- Market Cap: HK$113.256b
- Shares outstanding: 5.85b
- Website: https://www.swireproperties.com
Number of Employees
Location
- Swire Properties Limited
- One Pacific Place
- 33rd Floor
- Hong Kong
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1972 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 2012 |
| SWPF.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 2012 |
| SW9 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 2012 |
| 1972 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 2012 |
| 1972 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 2012 |
Biography
Swire Properties Limited, together with its subsidiaries, develops, owns, and operates mixed-use, primarily commercial properties in Hong Kong, Mainland China, the United States, and internationally. It operates through three segments: Property Investment, Property Trading, and Hotels. The company is involved in the development, leasing, and management of commercial, retail, and residential properties; development, construction, and sale of residential apartments; and operation of hotels. It also provides financial and real estate agency services. The company was founded in 1972 and is based in Hong Kong, Hong Kong. Swire Properties Limited is a subsidiary of Swire Pacific Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/04 12:36 |
| End of Day Share Price | 2020/07/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.