[ET Net News Agency, 20 June 2018] Daiwa Research raised its target price for Swire
Properties (SP)(01972) to HK$38.6 from HK$34.2, and retained its "buy" rating.
SP announced plans to sell its stake in Cityplaza Three and Four to a mainland company
for HK$15bn, generating a gain of HK$14bn in underlying profit. The research house thinks
the deal underscores growing interest in the investment market for properties in Island
East.
Daiwa expects Island East to continue on its current transformation path and create
substantial value for SP. It noted that the Queensway Plaza redevelopment project would
offer strategic value to SP.
Taking into account this asset sale, Daiwa revised up SP's 2019 EPS forecast by 5.9%
and its end-2018 NAV by 11% to HK$55.1/share. (KL)