Swire Pacific (SWIRE PACIFIC B, 00087) reported a strong first half for 2026, with underlying profit attributable to shareholders jumping 42.99% year-on-year to HK$7.84 billion. Recurring underlying profit climbed 47.79% to HK$6.96 billion, while reported profit rebounded to HK$6.77 billion from HK$0.82 billion a year earlier.

Revenue rose 8.01% to HK$49.45 billion, driven by broad-based growth across Property, Beverages and Aviation. Operating profit trebled to HK$7.49 billion (H1 2025: HK$1.86 billion). Operating cash flow increased 9.24% to HK$9.22 billion, supporting net cash inflow before financing of HK$8.90 billion, up 43.97% year-on-year.

Leverage improved: net debt fell 12.39% to HK$62.51 billion and the gearing ratio eased to 19.3% from 22.7%. Liquidity stood at HK$45.80 billion. The weighted average cost of debt declined to 3.4%, with 75% of borrowings on fixed rates. In June the company issued HK$4.70 billion in exchangeable bonds linked to Cathay Pacific shares.

The Board declared a first interim dividend of HK$1.50 per ‘A’ share and HK$0.30 per ‘B’ share, representing a 15% increase versus 2025. Payment is scheduled for 9 October 2026 to shareholders on record as of 11 September 2026.

Division highlights • Property: Underlying attributable profit to Swire Pacific rose 11.46% to HK$4.08 billion, underpinned by residential sales, resilient Hong Kong offices and strong Chinese mainland malls. Nearly 70% of Swire Properties’ HK$100 billion ten-year investment plan is now committed. • Beverages: Attributable profit improved 5.35% to HK$0.85 billion on volume gains in the Chinese mainland and South-East Asia despite cost pressures. Revenue advanced 8.35% to HK$23.31 billion. • Aviation: HAECO delivered HK$0.65 billion profit (+9.0%), while Swire Pacific’s share of Cathay group profit more than doubled to HK$2.83 billion, aided by robust travel demand and dilution gains from Air China’s share issue.

Capital expenditure totalled HK$2.00 billion in H1, while outstanding Group capex commitments reached HK$7.53 billion. Joint-venture commitments add a further HK$3.55 billion, with Swire’s share at HK$0.66 billion.

Looking ahead, management expects continued recovery in Hong Kong’s office and retail markets, ongoing investment in Coca-Cola capacity in Greater China and South-East Asia, stable MRO demand for HAECO, and strong summer traffic for the Cathay group despite high jet-fuel prices.