Swire (19 HK): On The FY25 Results, Swire Props' HK Writedowns, & Cathay Placement

• Swire Pacific (A) (19 HK)‘s FY25 recuring underlying profit was HK$9.7bn, 5% higher than in FY24.

• 83%-Held Swire Properties (1972 HK) reported an attributable loss of HK$1.53bn in FY25, up from HK$766mn, as Hong Kong property writedowns dented strong(er) mainland China retail ops.

• Swire Pac also announced it would place out 2.52% of its stake in Cathay Pacific Airways (293 HK). Cathay’s FY25 bottom line gained 9.5% yoy.

The Trade:

• At 0.34x forward P/B, Swire Pac is cheap.

• You could set up the stub here.

• Swire Props at 0.33x is inexpensive. With a superior yield. But HK IP continues to drag.

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