DBS Sets SWIREPROPERTIES Target Price at HK$30.38, Maintains Buy Rating

Stock News
Feb 20

DBS has issued a research report assigning SWIREPROPERTIES (01972) a target price of HK$30.38 and reiterating a "Buy" rating. The company's new retail complexes in Beijing, Shanghai, Sanya, and Xi'an are expected to commence operations progressively starting this year. These projects are seen as significant catalysts for SWIREPROPERTIES's medium- to long-term net profit and dividend growth, which should drive share price appreciation. According to DBS calculations, following recent share price gains, the stock currently trades at a 50% discount to its net asset value (NAV), indicating potential for a sustained upward trajectory. SWIREPROPERTIES has a proven track record of creating long-term value through the development and management of property complexes. The report noted improving signs in its core operations, with stability observed in the office portfolio at Pacific Place in Admiralty, coupled with enhanced tenant sales momentum in both its Hong Kong and mainland retail portfolios, which are expected to support solid rental income. Additionally, the company announced late last year the sale of two villas at its ultra-luxury project "6 Deep Water Bay Drive" for HK$2.2 billion, equating to HK$147,000 per square foot. This transaction is anticipated to be completed in the first quarter of this year and is likely to contribute significant profits, bolstering net earnings.

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