Changes in Hong Kong stocks | Swire Properties (01972) rose more than 4%, retail recovery favors industry prospects, and the company anticipates that the company's profit contribution to the settlement of sales projects will increase markedly

The Zhitong Finance App learned that Swire Properties (01972) rose by more than 4%. As of press release, it had risen 4.18% to HK$23.44, with a turnover of HK$468.83 million.

According to the news, Citi recently released a research report stating that retail sales in Hong Kong are expected to be strong in the first half of 2026 and lead in the second half of the year, and retail property rents are expected to remain flat in 2026. With the retail outlook better than expected, the strength of residential and central office buildings is in line with market expectations. On the performance side, CICC expects that 1H26 Taikoo Properties' shareholders should account for a 28% year-on-year increase in recurring basic profit to HK$4.4 billion, mainly benefiting from the profit supplement brought by the settlement of development projects such as Deep Water Bay Road 6; it is expected that property investment income will increase by medium to low units over the same period last year and maintain a dividend payment policy.

CICC also said that it is expected that starting this year, Swire Properties' contribution to settlement profits from development and sales projects will increase markedly. Project settlement in Hong Kong and Shanghai is expected to contribute about HK$2 billion in profit during the year and drive the growth of regular basic profit; in terms of settlement pace, the first half of the year is expected to be slightly higher than in the second half. The bank believes that considering the return of cash from property transactions, although there are still capital expenses such as project construction, etc., the company's net debt ratio is expected to remain relatively stable; sufficient commercial and residential cash flow and profit estimates will also support the company to maintain a dividend policy of “increasing the number of units in the target annual dividend.”