UBS released a research report stating that it gave Swire Properties (01972) a “buy” rating, with a target price of HK$23.3. The company plans to bid for 40% of the shares in the two sites in Pudong, Shanghai from Lujiazui (600663.SH) at prices of 6.6 billion yuan and 3.1 billion yuan respectively. Since Swire Properties has previously stated that it is actively seeking investment opportunities in Pudong, Shanghai, it is believed that the market is already prepared.
According to the report, the group currently has a total floor area of more than 10.6 million square feet in the mainland, with the goal of doubling it by 2032. Referring to Taikoo Li Qiantan, Shanghai, it is anticipated that the company's goal is to obtain a stable cost-benefit ratio of high units from the commercial portion of these two projects. If the company succeeds in acquiring these two projects, its net debt ratio is expected to increase from 10% in the first half of this year to 14%. Looking ahead, the company reaffirms its goal of increasing earnings per share by medium units every year, and maintains its long-term net debt ratio in the mid-ten digits.