JP Morgan has released a research report stating that SWIREPROPERTIES remains a top pick due to its visible earnings growth and strong track record of delivering mid-single-digit percentage dividend growth. Value-enhancing capital recycling could also provide upside risk. The stock still appears inexpensive, trading at a 52% discount to net asset value with a 5.2% dividend yield. JP Morgan maintains an "Overweight" rating on the stock with a target price of 30 HKD.

The report notes that SWIREPROPERTIES' first-half 2026 results show the company is on the right track across all major segments. The firm forecasts over 30% year-on-year earnings growth for the 2026 fiscal year, driven by property development deliveries. Although property development deliveries are expected to normalize from the 2027 fiscal year onward, JP Morgan still anticipates mid-single-digit percentage year-on-year growth for the 2027/28 fiscal years. The bank projects that attributable total rental income will achieve a mid-single-digit percentage compound annual growth rate (CAGR) from the 2025 fiscal year to the 2028 fiscal year, driven by over 10% CAGR in mainland China retail, but offset by low-single-digit percentage declines in Hong Kong offices. Notably, the attributable completed gross floor area is expected to grow from 10.6 million square feet in the 2025 fiscal year to 19.3 million square feet from the 2028 fiscal year onward, providing a solid buffer for earnings growth.

The bank indicates that the company's mainland China retail operations are expected to record over 10% year-on-year growth this year. In mainland China retail, strong momentum is expected to continue as a growth driver, with tenant sales improving 23% year-on-year in the first half of 2026, primarily driven by robust growth at Shanghai HKRI Taikoo Hui and Beijing Sanlitun Taikoo Li. However, even excluding these two malls, tenant sales grew an average of 10% year-on-year. The second half of 2026 will face a higher base, but the bank still expects overall year-on-year growth of over 10%, with high single-digit percentage growth excluding outliers.