On Swire (19 HK)’s 2026 Interim Results. Still Inexpensive

• Swire Pacific (19 HK)‘s 1H26 reported profit was HK$6.8bn versus HK$815mn in 1H25.

• 83%-Held Swire Properties (1972 HK) reported profit of HK$3.6bn vs. a loss of HK$1.2bn in 1H25. 45.12%-held Cathay Pacific (293 HK) reported a 71% increase in underlying profit of HK$6.2bn.

• Note: short interest in Cathay, one the best performing global airlines over the past year (in terms of share price), has picked up since the end of May.

The Trade:

• Although the NAV discount has narrowed, and the implied stub is elevated, at 0.34x forward P/B, I still like Swire Pac here.

• You could set up the stub. Swire Props at 0.33x is inexpensive. With a (slightly) superior yield.

• I’d still be inclined to simply go outright long in Swire Pac here.

• Note: short interest in Cathay is on the rise.