SEHK:1972

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Swire Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.7%

SEHK:1972

-1.1%

HK Real Estate

-1.1%

HK Market


1 Year Return

11.0%

SEHK:1972

2.9%

HK Real Estate

-6.5%

HK Market

1972 outperformed the Real Estate industry which returned 2.9% over the past year.

1972 outperformed the Market in Hong Kong which returned -6.5% over the past year.


Share holder returns

1972IndustryMarket
7 Day4.7%-1.1%-1.1%
30 Day2.5%3.8%3.4%
90 Day-0.3%-7.3%-7.7%
1 Year13.8%11.0%7.2%2.9%-3.2%-6.5%
3 Year60.9%47.9%61.6%45.0%30.4%17.4%
5 Year54.6%33.9%79.1%48.3%25.2%4.2%

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

Valuation

Is Swire Properties undervalued based on future cash flows and its price relative to the stock market?

6.61x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Swire Properties's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Swire Properties's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Swire Properties is overvalued based on earnings compared to the HK Real Estate industry average.

Swire Properties is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Swire Properties earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Swire Properties is overvalued based on assets compared to the HK Real Estate industry average.


Next Steps

Future Growth

How is Swire Properties expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

-41.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Swire Properties's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Swire Properties's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Swire Properties's revenue growth is positive but not above the Hong Kong market average.

Swire Properties's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Swire Properties's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Swire Properties is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Swire Properties performed over the past 5 years?

29.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Swire Properties has delivered over 20% year on year earnings growth in the past 5 years.

Swire Properties's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Swire Properties's 1-year earnings growth is negative, it can't be compared to the HK Real Estate industry average.


Return on Equity

Swire Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Swire Properties used its assets more efficiently than the HK Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Swire Properties's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Swire Properties's financial position?


Financial Position Analysis

Swire Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Swire Properties's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Swire Properties's level of debt (11.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (17.4% vs 11.4% today).

Debt is well covered by operating cash flow (29.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is Swire Properties's current dividend yield, its reliability and sustainability?

2.86%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Swire Properties's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).

Swire Properties's dividend is below the markets top 25% of dividend payers in Hong Kong (5.73%).

Swire Properties has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Swire Properties only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

What is the CEO of Swire Properties's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Guy Martin Coutts Bradley (53yo)

4.5yrs

Tenure

HK$14,302

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

Guy Martin Coutts's remuneration is lower than average for companies of similar size in Hong Kong.

Guy Martin Coutts's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.5yrs

Average Tenure

53yo

Average Age

The tenure for the Swire Properties management team is about average.


Board Age and Tenure

3.4yrs

Average Tenure

53yo

Average Age

The tenure for the Swire Properties board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Elizabeth Kok

    Director of Business Development

  • Fanny Lung (53yo)

    Finance Director & Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$4.70k
  • Guy Martin Coutts Bradley (53yo)

    CEO & Executive Director

    • Tenure: 4.5yrs
    • Compensation: HK$14.30k
  • Brian Williams (60yo)

    Deputy Chairman of Swire Hotels

    • Tenure: 13.5yrs
  • Gordon Ongley (65yo)

    Senior Advisor

    • Tenure: 4.0yrs
  • Mabelle Ma (51yo)

    Director of Development & Valuations

    • Tenure: 9.5yrs
  • Anna Thompson (51yo)

    Director Human Resources

    • Tenure: 1.5yrs
  • David Fu (55yo)

    Company Secretary

    • Tenure: 9.4yrs
  • Merlin Bingham Swire (45yo)

    Chairman

    • Compensation: HK$1.42k

Board Members

  • Michelle Low (59yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$1.49m
  • Spencer Theodore Fung (46yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: HK$599.00k
  • Nicholas Adam Fenwick (58yo)

    Non-Executive Director

    • Tenure: 1.2yrs
  • May Yihong Wu (52yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$843.00k
  • Fanny Lung (53yo)

    Finance Director & Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$4.70k
  • Guy Martin Coutts Bradley (53yo)

    CEO & Executive Director

    • Tenure: 11.5yrs
    • Compensation: HK$14.30k
  • Lily Cheng (40yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$761.00k
  • Patrick Healy (53yo)

    Non-Executive Director

    • Tenure: 4.5yrs
  • Raymond Lim (60yo)

    Non-Executive Director

    • Tenure: 6.0yrs
    • Compensation: HK$575.00k
  • Merlin Bingham Swire (45yo)

    Chairman

    • Tenure: 1.0yrs
    • Compensation: HK$1.42k

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$188.078b
  • Shares outstanding: 5.85b
  • Website: Click here

Number of Employees


Location

  • Swire Properties Limited
  • One Pacific Place
  • 33rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1972SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2012
SW9BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 2012
SWPF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2012
SW9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2012
1972SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2012
1972SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2012
SWRO.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDSep 2013

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 op ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/15 12:55
End of Day Share Price2019/07/15 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.