Swire Shi Minglun: There is no indication that the retail hotel business has improved and the interim dividend cut is an exception

Financial News

Written by: Lin Leqian

2020-08-13 18:03

Swire (0019) suffered a loss of 7.7 billion yuan in the first half of the year. Chairman Shi Minglun stated at the results conference that the epidemic has adversely affected a number of selected businesses. China Thailand (0293) also does not expect a significant recovery in the future, so it is difficult to predict Overall performance in the second half of the year. However, he pointed out that the real estate and beverage businesses in the Mainland are recovering well and emphasized that the group's financial position is sound and that even if it does not sell non-core assets, it still has sufficient liquidity for investment.

When asked about the impact of the Sino-US conflict on the group, he described that the related disputes have had a negative impact on global trade, but the group’s business is mainly concentrated in the local market and has not seen much impact. The group’s 150-year rooted in Hong Kong still has a positive impact on Hong Kong’s prospects. We are confident that we will continue to look for investment opportunities in China and Hong Kong in the future.

The interim dividend reduction is only an exception

Swire Properties (1972) Chief Executive Officer Bradley said that the performance of Hong Kong hotels in the first half of the year was dismal, and there is no sign of improvement in the second half of the year. Since August last year, the group has reduced rents to tenants who have difficulties in leasing properties, and will continue to provide relevant measures in the second half of the year. Mainland retail business performed strongly. The hotel occupancy rates in Chengdu, Shanghai and Guangzhou have returned to a healthy level, and the momentum is expected to continue in the second half of the year.

He mentioned that the demand for local office buildings was weak in the second half of the year. As the occupancy rates of Pacific Place and Cityplaza are still high, there is still confidence in the office market in the medium and long term. In the residential sector, Swire has previously formed a consortium to bid for the land above the MTR Wong Chuk Hang. He pointed out that the group will strengthen the rapid development of residential projects. It is expected to launch three to four residential projects in the next three to four years. He has confidence in the local property market. .

Regarding the dividend policy, Shi Minglun said that the group has maintained a dividend payout ratio of about 50% in the past 5 years and has no intention to change the dividend policy. This interim dividend reduction is only an exception, mainly due to poor performance, and the final dividend forecast is still stated It's still early, it depends on the situation and prospects then.

Swire Properties makes 89% less profit in half a year and sends 30 cents to expect weak office demand in the second half

Swire lost 7.7 billion yuan in half a year and cut its interim interest rate by 48%

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