Swire Properties (1972 HK): Buy: Shopping malls in focus

研报英文原文证据摘录

Swire Properties (1972 HK): Buy: Shopping malls in focus

3 August 2026

Swire Properties (1972 HK) EquitiesREMD

Buy: Shopping malls in focus Hong Kong

◆ Tenant sales across SWP’s malls maintained good

MAINTAIN BUY

momentum, while occupancy in its HK office improved in 2Q

◆ Alongside more residential bookings, we expect SWP’s TARGET PRICE (HKD) PREVIOUS TARGET (HKD)

underlying earnings to regain momentum 30.20 30.20

◆ Maintain Buy rating and HKD30.20 target price SHARE PRICE (HKD) UPSIDE/DOWNSIDE

23.90 +26.4%

What’s new: We are constructive on the outlook for Swire Properties’ commercial (as of 31 Jul 2026)

property business, and the 2Q26 operational update reinforced our view. Tenant

sales across its malls in Hong Kong and mainland China continued their strength and MARKET DATA

Market cap (HKDm) 137,604 Free float 18%

outperformed the overall market, despite ongoing geopolitical tensions. We see a Market cap (USDm) 17,547 BBG 1972 HK

high likelihood that its attributable rental income will return to y/y growth in 1H26e 3m ADTV (USDm) 9 RIC 1972.HK

after two years of decline, supported by higher retail turnover rent and improved FINANCIALS AND RATIOS (HKD)

occupancy across the office portfolio. Together with a pick-up in bookings from its Year to 12/2025a 12/2026e 12/2027e 12/2028e

HSBC EPS 1.49 1.48 1.45 1.44

residential projects starting from 2026e, we expect SWP’s underlying earnings HSBC EPS (prev) 1.49 1.48 1.45 1.44

(excluding divestment gains) to regain momentum. Maintain Buy. Change (%) 0.0 0.0 0.0 0.0

Consensus EPS 1.21 1.43 1.46 1.57

Good momentum in the shopping mall portfolio: All of its SWP’s shopping malls PE (x) 16.0 16.1 16.5 16.6

Dividend yield (%) 4.8 5.0 5.2 5.4

in HK and mainland China delivered tenant sales growth on a y/y basis in 2Q.