[ET Net News Agency, 6 April 2020] J.P. Morgan lowered its target price for Swire
Properties (01972) to HK$25.8 from HK$28.5 and maintained its "overweight" rating.
The research house said HK retail accounts for less than 20% of the company's earnings
and NAV; JPM thinks the recent underperformance of the stock is overdone driven by poor
visibility of retail and previously expensive valuation.
JPM said Swire's Island East office portfolio remains very resilient despite the overall
slowdown in office demand; leasing of Two Taikoo Place is likely to start late-2020 and
JPM thinks it will start providing an earnings uplift in 2021.
JPM believes future office demand will be driven towards decentralized locations even
after the pandemic subsides. There is also a strong completion pipeline in Beijing and
Shanghai. Swire Properties is not the cheapest landlord but its management and ESG profile
are among the best quality in the sector. (KL)
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01972 SWIREPROPERTIES
Nominal 
15.340 +0.040 (+0.261%) Research Report
06/04/2020 17:04
{I-bank focus}JPM trims Swire Properties (01972) to HK$25.8
| Remark: | Real time quote last updated: 23/04/2024 17:59 |
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