JP Morgan: Bullish on Swire Properties (01972) high-yield dividends, rating "buy"

JP Morgan released a research report stating that SWIREPROPERTIES (01972) announced its full-year results as of the end of December last year. The basic net profit (including disposal gains) increased by 27% year-on-year to HKD 8.6 billion. However, the recurring basic profit decreased by 3% year-on-year to HKD 6.3 billion due to the decline in Hong Kong office business and the sale of the Miami shopping plaza, both of which were higher than the bank's expectations. Overall, the performance roughly meets the bank's expectations, and JP Morgan has set a target price of HKD 27 for the stock with a "buy" rating. JP Morgan is optimistic about SWIREPROPERTIES for three reasons: high dividend certainty, commitment to achieve single-digit growth in earnings per share, improvement in Mainland China retail business, active capital recycling, and good historical performance. Although the Hong Kong office portfolio remains weak, they believe that if any signs of recovery emerge, the group's valuation will be further reassessed as they believe the current stock price does not yet reflect the recovery of the Hong Kong office business.