|Bid||72.250 x 0|
|Ask||72.400 x 0|
|Day's Range||71.800 - 72.900|
|52 Week Range||70.000 - 103.800|
|Beta (3Y Monthly)||0.73|
|PE Ratio (TTM)||4.60|
|Forward Dividend & Yield||2.70 (3.75%)|
|1y Target Est||97.86|
Swire Pacific , parent of airline Cathay Pacific , finds itself under pressure from Beijing these days. The company's subsidiary Swire Coca-Cola is one of the world's largest bottlers, with the license to bottle Coke's 58 beverage brands in much of the western United States, 11 Chinese provinces, Hong Kong and Taiwan. It's now testing a much-needed plastic-waste program in Hong Kong, one of the world's most-wasteful cities.
Qatar Airways has full confidence in Cathay Pacific Airways Ltd and will increase its 10% stake in the Hong Kong carrier if it has any opportunity to do so, the Qatari airline's chief executive said on Tuesday. Cathay has become the biggest corporate casualty of political unrest in Hong Kong after China demanded it suspend staff involved in, or who support, anti-government demonstrations.
Hong Kong is gearing up for further protests this week after hundreds of thousands of anti-government demonstrators braved heavy rain to rally peacefully on Sunday, marking a change to what have often been violent clashes. Sunday's massive turnout, which organisers put at 1.7 million, showed that the movement still has widespread support despite chaotic scenes last week when protesters occupied the Chinese-ruled city's airport. Some activists had apologised for the airport turmoil and on Sunday night protesters could be seen urging others to go home peacefully.
(Bloomberg Opinion) -- After 10 weeks of silence, Hong Kong’s business elite have started voicing opposition to the city’s increasingly violent protests. The cracking in the facade of neutrality comes amid mounting damage to the Hong Kong economy and pressure from Beijing for public displays of loyalty. Being forced to take sides is unlikely to end happily for them.On Monday, property billionaire Peter Woo called on protesters to quit and wrote that some people were aiming to “purposely stir up trouble.” A day later, Sun Hung Kai Properties Ltd., the city’s biggest developer by market value, issued a statement condemning violent protests. Former Wheelock & Co. Chairman Woo, Sun Hung Kai Chairman Raymond Kwok and his brother Thomas Kwok are among Hong Kong’s 10 richest people, each worth more than $10 billion.The reticence of Hong Kong’s tycoons has been understandable. In normal circumstances, business can be expected to range on the side of the establishment and the forces of law and order. However, overwhelming public support for the protests triggered by a proposed extradition bill has forced them to consider the consequences of potentially alienating employees and customers in the city. Moreover, the business community itself expressed severe misgivings over a law that would have allowed people accused of a crime in China to be sent for trial in the mainland’s politically controlled legal system. Indeed, opposition from companies was an obvious factor in the government’s decision to suspend the bill, as we wrote in June.Threading that needle has now become close to impossible. As the weeks have stretched on and the protests have intensified, China’s central government has become increasingly alarmed. The State Council’s Hong Kong and Macau Affairs Office has staged three press conferences in the past month, having held none in the first 22 years after the former British colony returned to China.Beijing is now demanding order. On Aug. 7, the office called on Hong Kong’s elite to “have no fears and stand up” to protesters, urging them to safeguard the city’s stability and demonstrate “positive energy.” The following day, 17 real estate companies including Sun Hung Kai and Li Ka-shing’s CK Asset Holdings Ltd. released a statement saying Hong Kong had been suffering from “violence perpetrated by a small group of individuals” whose actions had “deviated from the original intent of the peaceful demonstrations and are bringing distress to the business community and the general public as a whole.” Woo is the most prominent businessman to have spoken out against the protests in his own name. With more than $7 billion of his wealth in Wheelock stock, he may be in a more precarious position than most. Subsidiary Wharf Real Estate Investment Co. put up signs at its Harbour City mall this month asking police not to enter unless a crime had been committed, after anti-government protesters threatened to disrupt business at the complex, the South China Morning Post reported. Harbour City and Wharf REIC’s Times Square between them account for 10% of Hong Kong’s retail sales, according to Bloomberg Intelligence analyst Patrick Wong. The company put up the signs after clashes between police and demonstrators last month at a shopping center in the suburban town of Sha Tin that prompted criticism of owner Sun Hung Kai. In that case, the developer denied protesters’ allegations that it invited police to enter the mall.Placating protesters comes with the risk of enraging China, though. For evidence of the costs of being insufficiently supportive, look no further than Cathay Pacific Airways Ltd. Last Friday, China’s civil aviation authority issued a warning to the airline for failing to take appropriate action against employees who took part in illegal protests and demanded a raft of changes, ordering the carrier to suspend all such staff from duty on flights to the mainland.That was just the start. At least two Chinese state-run companies told their employees not to fly on Cathay, and the investment-banking arm of the nation’s biggest lender cut the company’s stock to a “strong sell,” citing damage to its brand from the Hong Kong protests. Cathay shares fell to a 10-year low this week. On Tuesday, Cathay’s parent company Swire Pacific Ltd., said it “resolutely” supports the Hong Kong government and police in restoring law and order. The statement followed a visit by Chairman Merlin Swire to meet with China’s aviation regulators in Beijing on Monday.Expect more such declarations. Like Swire, which has bottling and property operations in China, Hong Kong’s real estate tycoons have major mainland businesses to protect. Wheelock, for example, gets about 38% of its revenue from the mainland.But beware the backlash at home. Hong Kong’s property billionaires hold huge sway over the economy, in a city where inequality has been exacerbated by the world’s least affordable home prices. If seen to be lining up behind forces that aim to perpetuate that system and reject all protesters’ demands – which include greater democracy – they may themselves become tempting targets for popular ire. It’s a no-win situation. To contact the author of this story: Nisha Gopalan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
China said on Wednesday Hong Kong's protest movement had reached "near terrorism" and more street clashes followed ugly scenes the previous day when protesters set upon men they suspected of being government sympathisers. The United States said it was "deeply concerned" at news of Chinese paramilitary police movement near the border, urged Hong Kong's government to respect freedom of speech, and issued a travel advisory urging caution when visiting the city. By nightfall, police and protesters were again facing off on the streets, with riot officers shooting tear gas almost immediately as their response to demonstrators toughens.
SINGAPORE/HONG KONG (Reuters) - The top shareholder and manager of Cathay Pacific Airways condemned protests in Hong Kong and vowed to follow China's aviation regulations, after the airline suspended a second pilot on Tuesday as deepening unrest hit its operation and stock. Cathay, whose strong British links make it a symbol of Hong Kong's colonial past, has emerged as the highest-profile corporate target as Beijing looks to quell protests in the territory that have gone on for ten straight weeks. Shares in the Hong Kong flag carrier sunk to a 10-year low, hit by concerns that Beijing could slap further sanctions on the airline, causing more damage to its brand.
(Bloomberg Opinion) -- Airlines are fundamental to the self-image of sovereign territories. The largest one in any country is routinely dubbed a “flag carrier,” as if it was the leader of a naval squadron. No wonder Beijing has it in for Cathay Pacific Airways Ltd.China’s civil aviation authority has ordered Cathay to bar air crew who supported Hong Kong’s recent protests from working on flights to or from mainland China, citing bogus threats to aviation safety. It also told the airline to submit information about all crew flying over mainland Chinese airspace for pre-approval. Cathay’s Chief Executive Officer Rupert Hogg swiftly responded that the carrier would comply with the new rules.Hogg had little choice. Chinese airspace represents a great wall which Cathay must cross every day of its existence. While the airline could probably survive if it lost landing rights at mainland airports, maintaining free passage over the country is an existential issue.That shows up when you look at where Cathay picks up its passengers. Flights to and from China account for only about 7% of the carrier’s traffic and Europe, where the shortest routes must inevitably traverse the mainland, is another 21%. Add up those two buckets and you’re looking at more than a quarter of the total – and a comparable portion of revenues – that could be affected by the new rules.To get an idea of how damaging a wider embargo could be, consider how Cathay’s third-biggest shareholder, Qatar Airways, has fared since Saudi Arabia closed its airspace to the carrier in June 2017. A 2.8 billion riyal ($765 million) profit in the year through March 2017 reversed into a 252 million riyal loss the following year. Thanks in part to the need to divert around Saudi territory, fuel costs went up about 30%, by more than 3 billion riyal, even as passenger numbers fell 8.9%. Matters would probably have been even worse if its planes hadn’t been pressed into service to airlift essentials to and from the country, with freight carriage going up by 205,000 metric tons during the year.The situation would almost certainly be worse than that for Cathay Pacific. For one thing, China is simply larger than Saudi Arabia and more comprehensively blocks key routes. The option of carrying out a minor diversion over neighboring territory, as Qatar has done with Iranian and Iraqi airspace, simply wouldn’t work for European routes. For another, while both carriers are major cargo airlines, Cathay can’t fall back on the sort of airlift role that Qatar performed.Quite the opposite: Cathay’s cargo unit, which accounts for about a quarter of revenue, is highly vulnerable to the current U.S.-China tensions thanks to the outsize share of electronics in Hong Kong’s airborne trade. The volume of cargo carried fell 5.7% from a year earlier, or 59,000 tons, in the six months through June. Revenue per ton, per kilometer, dropped 9.8%.For the moment, air crew unions seem reassured that the rules on overflying China won’t be a dramatic change to current regulations – but Cathay’s management is on notice that Beijing can turn the issue into a more potent weapon. The worst-case scenario, of an airline that’s forced to police the political views of its own workforce in order to maintain the open skies it needs to operate, would be a horrendous one for Cathay. Driving a wedge between management and staff inclined to support Hong Kong’s aspirations for greater freedom, and between the airline and customers who retain loyalty to it as an icon of the territory’s unique status, could quickly erase the gains from nearly four years of turning round the business.Waiting in the wings in that event is the risk that the long-rumored takeover by Cathay’s second-largest shareholder, Air China Ltd., could finally come to fruition. The largest shareholder, Swire Pacific Ltd., would likely have to reduce or sell its 45% holding to get Air China’s 30% stake into a majority – but for all that Cathay is a prestigious jewel in the crown for ultimate shareholder John Swire & Sons Ltd., it represents only 13% of so of total revenue. There’d be no sense in the Swires sacrificing their broader relations with China for the sake of the airline.That would be another small victory for China Inc. and a larger blow to Hong Kong’s sense of itself as an independent territory. No wonder Beijing is so keen to clip Cathay Pacific’s wings.To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
HONG KONG/BEIJING, Aug 9 (Reuters) - China's aviation regulator on Friday demanded Hong Kong flag carrier Cathay Pacific Airways suspend personnel who have engaged in illegal protests in the city from staffing flights into its airspace from August 10. Hong Kong has been embroiled in increasingly violent anti-government street protests for the past two months, which a top Chinese official described this week as the greatest crisis since its return from British to Chinese rule in 1997.
Conglomerate Swire Pacific became the latest major Hong Kong company to voice concern about the impact of protests in the city on business activity, saying they are having direct and indirect impact on demand on a number of its businesses. The comments by Swire, whose business spans retail to property to airlines, come after similar concerns raised by Cathay Pacific Airways Ltd and Hongkong and Shanghai Hotels's on Wednesday. Swire owns 45% of Cathay Pacific, Refinitiv data shows.
March 14 (Reuters) - Swire Pacific Ltd: * FY REVENUE HK$84,606 MILLION VERSUS HK$80,289 MILLION * FY PROFIT ATTRIBUTABLE HK$ 23,629 MILLION VERSUS HK$26,070 MILLION * DECLARED DIVIDENDS FOR FULL YEAR TOTALLING ...
Jan 21 (Reuters) - Baguio Green Group Ltd: * ALBA GROUP ASIA, BAGUIO WASTE MANAGEMENT & RECYCLING LIMITED & SWIRE BEVERAGES TO FORM A JOINT VENTURE * JOINT VENTURE (JV) TO OPERATE A STATE-OF- -ART RECYCLING ...
Dec 13 (Reuters) - Swire Pacific Ltd: * ANNOUNCES SALE OF INTERESTS IN PAINTS BUSINESS * ESTIMATED PROFIT ON SALE OF SALE INTERESTS IS ABOUT HK$2.7 BILLION * SWIRE INDUSTRIAL TO SELL ITS 100% INTEREST ...
Nov 28 (Reuters) - Swire Pacific Ltd: * UPDATES ON SANCTION OF SCHEME AND CONFIRMATION OF CAPITAL REDUCTION OF HAECO BY HIGH COURT * UPDATES ON PROPOSAL FOR PRIVATISATION OF HONG KONG AIRCRAFT ENGINEERING ...
Nov 2 (Reuters) - Swire Pacific Ltd: * UPDATES ON SALE OF STAKE IN CITYPLAZA THREE AND CITYPLAZA FOUR PROPERTIES * 49% INTEREST IN PURCHASER WAS TRANSFERRED TO EAGLE FAIRWAY LTD & PURCHASER IS OWNED BY ...
HONG KONG (Reuters) - Hong Kong's privacy commission on Thursday expressed serious concern over a data breach at Cathay Pacific Airways and urged the airline to notify passengers affected by the leak as ...
Oct 22 (Reuters) - Swire Pacific Ltd: * MARTIN CUBBON HAS BEEN APPOINTED AS A NON- EXECUTIVE DIRECTOR Source text for Eikon: Further company coverage: