Swire Pacific's Half-Year Results Below Par Across Most Divisions

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

For full-year 2016, Swire Pacific reported underlying profit of HKD 3.1 billion, down 69% year on year. Underlying EPS decreased to HKD 2.04, from HKD 6.58 a year ago. Excluding the revaluation, impairment, and disposal gains and losses, the underlying profit was HKD 5 billion, 20% below our estimate of HKD 6.3 billion. The company declared a full year dividend of HKD 2.10 per share, down 46% from 2015. Net gearing was 23.5%, up 90 basis points from the end of 2015.The poor results were mostly due to weaker-than-expected results from Swire Properties and a large miss from Cathay Pacific. Based on the shortfall seen across all divisions, we adjusted our model assumptions accordingly, resulting in our fair value estimate decreasing to HKD 78 per share from HKD 80 . We maintain our no-moat rating for the company.Analyst: Phillip Zhong

For full-year 2016, Swire Pacific reported underlying profit of HKD 3.1 billion, down 69% year on year. Underlying EPS decreased to HKD 2.04, from HKD 6.58 a year ago. Excluding the revaluation, impairment, and disposal gains and losses, the underlying profit was HKD 5 billion, 20% below our estimate of HKD 6.3 billion. The company declared a full year dividend of HKD 2.10 per share, down 46% from 2015. Net gearing was 23.5%, up 90 basis points from the end of 2015.The poor results were mostly due to weaker-than-expected results from Swire Properties and a large miss from Cathay Pacific. Based on the shortfall seen across all divisions, we adjusted our model assumptions accordingly, resulting in our fair value estimate decreasing to HKD 78 per share from HKD 80 . We maintain our no-moat rating for the company.Analyst: Phillip Zhong

Full-Year Results a Miss on Continued Weakness Across Business Segments

Swire Pacific (A)

Full-Year Results a Miss on Continued Weakness Across Business Segments