00293 Overview

Market Performance: The HSI closed down 251 points (1%) at 25,465, with significant declines in major stocks like HSBC and Standard Chartered, both dropping over 5%.

Inflation and Economic Indicators: China's inflation rate for February rose to 1.0%, while the M2 money supply remained unchanged at 9% year-on-year.

Commodity and Airline Stocks: CNOOC saw a 2.3% increase amid rising oil prices, while airline stocks like China Southern Airlines and Air China fell over 4%.

Tech Stock Movements: Major tech companies like Tencent and Alibaba experienced slight gains, while others like Meituan and Kuaishou saw declines of around 1-1.7%.

Market Performance: The HSI closed down 123 points (0.5%) at 25,593, with significant declines in major financial stocks like HSBC and Standard Chartered, while the total market turnover reached HKD126.059 billion.

Sector Movements: Oil stocks like PetroChina and CNOOC saw gains due to rising oil prices, while gold stocks and airlines experienced declines amid fluctuating market conditions.

Corporate Developments: Swire Group plans to raise HKD1.79 billion by selling a stake in Cathay Pacific, which saw a drop in its stock price, while Swire Pacific A's stock rose after announcing an increased dividend.

Tech Stock Trends: Major tech companies like Tencent and Alibaba saw slight increases, while others like Meituan and Kuaishou experienced minor declines, reflecting mixed performance in the tech sector.

SWIRE PACIFIC Performance: SWIRE PACIFIC reported a 11% year-on-year increase in recurring profit to $5 billion for 2H25, exceeding expectations, with a final dividend per share of $2.5, up 19% YoY.

Broker Forecasts: CLSA raised its recurring profit forecasts for SWIRE PACIFIC for 2026 and 2027 by 8% and 7% respectively, and increased its target price from $74 to $91, maintaining an Outperform rating.

SWIREPROPERTIES and CATHAY PAC AIR: CLSA noted favorable conditions for profit growth in SWIREPROPERTIES and highlighted risks related to fuel costs for CATHAY PAC AIR, which is currently rated as Underperform.

Short Selling Data: As of March 12, 2026, SWIRE PACIFIC had a short selling ratio of 26.489%, while CATHAY PAC AIR had a higher ratio of 30.801%.

SWIRE PACIFIC A Share Placement: SWIRE PACIFIC A announced a placement of 153 million shares of CATHAY PAC AIR at $11.74 per share, a 9.6% discount to the previous closing price, aiming to adjust its stake in the airline.

Financial Impact: The placement will result in net proceeds of $1.789 billion for SWIRE PACIFIC A and a disposal gain of $365 million, with the completion expected by March 17.

Market Reactions: CLSA's report indicates that the placement price reflects a projected PB ratio of 1.2x for 2027, which may be viewed negatively by the market.

Short Selling Data: As of March 12, short selling for SWIRE PACIFIC A was $45.19 million with a ratio of 26.489%, while CATHAY PAC AIR had short selling of $77.13 million and a ratio of 30.801%.

Swire Group's Financial Performance: Swire Group's 2025 results exceeded expectations, highlighted by a surprising 13% increase in dividends per share, reinforcing its strong track record in shareholder returns.

Dividend Policy Outlook: Management believes in the sustainability of its progressive dividend policy, expecting stable single-digit annual growth in dividends per share, while share buybacks will be a secondary option.

SWIREPROPERTIES Valuation: BofA Securities is optimistic about SWIREPROPERTIES, noting its current share price is at a 30% discount to net asset value, making it an attractive investment compared to historical averages.

CATHAY PAC AIR Performance Impact: Despite rising oil prices affecting CATHAY PAC AIR's earnings outlook, Swire Group's dividend policy remains unaffected by the airline's performance, with BofA maintaining a Buy rating on SWIRE PACIFIC A.

CATHAY PAC AIR Performance: CATHAY PAC AIR shares opened 3% lower, hitting a low of HKD12.38, and last traded at HKD12.5, down 3.77% with significant turnover of HKD1.846 billion.

SWIRE PACIFIC A Stake Reduction: SWIRE PACIFIC A announced a plan to sell 2.52% of its stake in CATHAY PAC AIR, reducing its shareholding from 47.64% to approximately 45.12% after the placement of 153 million shares at HKD11.74 each.

Short Selling Data: CATHAY PAC AIR experienced short selling of $77.13 million with a ratio of 30.801%, while SWIRE PACIFIC A had short selling of $45.19 million and a ratio of 26.489%.

Financial Highlights: CATHAY PAC AIR reported a 9.5% increase in full-year net profit to $10.828 billion, and raised its second interim dividend per share by 30.6% to $0.64.