Swire Pacific (0019, 0087) and Swire Properties (1972) increased dividend payouts as the latter saw first-half operating profit improve from its retail and hotel businesses in Hong Kong and the mainland.
Swire Properties yesterday declared a first interim dividend of 33 HK cents, up by 3 percent year on year, and aims to deliver mid-single-digit annual growth in dividends.
This came despite a 6 percent drop to HK$3.9 billion in its first-half underlying profit, which excludes fair value changes of investment properties, due to a delay in sales of car parking spaces at Taikoo Shing.
However, its recurring underlying profit, which further excludes profits from divestment, rose by 6 percent to HK$3.89 billion during the period, driven by higher retail rental income and higher operating profit before depreciation from its hotels in Hong Kong and the mainland, partly offset by its office businesses in the city.
For its HK$100 billion investment plan to develop new projects over the next decade in Hong Kong, the mainland and Southeast Asia, the developer said about HK$39 billion has been committed, including HK$17 billion to the mainland, HK$11 billion to Hong Kong and HK$11 billion to residential trading projects.
Swire Properties looks positive for its retail businesses in the city for the second half thanks to increasing inbound tourism and improving consumer confidence. But the city's office sector is expected to remain weak for the rest of the year.
This came as Swire Pacific proposed a first interim dividend of HK$1.2 per A share and 24 HK cents per B share, both up by 4 percent from the previous year.
The conglomerate reported a 219 percent jump in underlying profit to HK$5.6 billion in the first six months from a year ago, with recurring underlying profit soaring 284 percent to HK$4.9 billion. Its first-half net profit advanced 121 percent to HK$4.2 billion from a year earlier.
The surge in profit was thanks to a strong recovery of its aviation division including Cathay Pacific Airways (0293), which contributed a profit of HK$1.8 billion, it noted.
Its beverage business Swire Coca-Cola reported a 23.5 percent growth in net profit to HK$1.4 billion.
The company said it completed a share buyback program of up to HK$4 billion earlier this year and will continue to evaluate future share buy-back schemes.
The group expects the rebound will continue into the second half, driven mostly by the recovery of Cathay.
Swire Pacific and Swire Properties chairman Guy Bradley, center, Swire Pacific finance director Martin Murray, left, and Swire Properties chief executive Tim Blackburn. Sing Tao
