SEHK:1972

Stock Analysis Report

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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 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

0.3%

HK Real Estate

0.8%

HK Market


1 Year Return

-27.8%

1972

-3.0%

HK Real Estate

5.5%

HK Market

Return vs Industry: 1972 underperformed the Hong Kong Real Estate industry which returned -3.9% over the past year.

Return vs Market: 1972 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

1972IndustryMarket
7 Day2.2%0.3%0.8%
30 Day-1.0%-4.2%-2.4%
90 Day-13.7%1.8%7.6%
1 Year-24.9%-27.8%2.2%-3.0%9.8%5.5%
3 Year-25.5%-32.1%8.9%-4.3%2.1%-8.9%
5 Year-4.7%-18.5%43.8%18.1%12.7%-6.2%

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 compared to its fair value and its price relative to the market?

8.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1972 (HK$18.46) is trading above our estimate of fair value (HK$8.67)

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 (8x) compared to the HK Real Estate industry average (7x).

PE vs Market: 1972 is good value based on its PE Ratio (8x) compared to the Hong Kong market (10.4x).


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's PB Ratio (0.4x) is in line with the HK Real Estate industry average.


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 (-0.01% per year).

High Growth Revenue: 1972's revenue is forecast to decline over the next 3 years (-0.01% 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 2019 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 (4.2%).


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?

4.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1972's dividend (4.77%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1972's dividend (4.77%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.85%).


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 (64.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Guy Martin Coutts Bradley (54 yo)

5.58yrs

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 ($USD2.12M) is above average for companies of similar size in the Hong Kong market ($USD886.71K).

Compensation vs Earnings: Guy Martin Coutts's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Merlin Bingham Swire
Chairman2.08yrsHK$1.90mno data
Guy Martin Coutts Bradley
CEO & Executive Director5.58yrsHK$16.46mno data
Ngan Yee Lung
Finance Director & Executive Director2.83yrsHK$6.88mno data
Fiona Ma
Director of Marketing0.33yrno datano data
Elizabeth Kok
Director of Business Developmentno datano datano data
Anna Thompson
Director Human Resources2.58yrsno datano data
Toby Smith
Deputy Chairman of Swire Hotels0.58yrno datano data
Dean Winter
Managing Director of Swire Hotels0.17yrno datano data
St. John Andrew
Company Secretary0.58yrno datano data
Suk Ma
Director of Development & Valuations10.58yrsno datano data
Don Taylor
Director of Office4.25yrsno datano data
Raymond Yau
General Manager of Technical Services & Sustainable Developmentno datano datano data

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: 1972's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Merlin Bingham Swire
Chairman2.08yrsHK$1.90mno data
Guy Martin Coutts Bradley
CEO & Executive Director5.58yrsHK$16.46mno data
Ngan Yee Lung
Finance Director & Executive Director2.83yrsHK$6.88mno data
Ka-Lai Cheng
Independent Non-Executive Director3.42yrsHK$761.00k0.000020%
HK$ 21.6k
Nicholas Adam Hodnett Fenwick
Non-Executive Director2.25yrsno datano data
Jinlong Wang
Independent Non-Executive Director0.92yrHK$175.00kno data
May Yihong Wu
Independent Non-Executive Director3.25yrsHK$843.00kno data
Mei Shuen Low
Non-Executive Director9.92yrsno datano data
Siang Keat Lim
Non-Executive Director7.08yrsHK$575.00kno data
Spencer Theodore Fung
Independent Non-Executive Director7.67yrsHK$650.00kno data
Patrick Healy
Non-Executive Director5.58yrsno datano data
Tak Kwan Choi
Independent Non-Executive Director1.25yrsHK$404.00kno data

3.3yrs

Average Tenure

54yo

Average Age

Experienced Board: 1972's board of directors are considered experienced (3.3 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$107.991b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1972SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 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

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 Analysis2020/08/10 12:51
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.