Capstone Holding Corp. lowers convertible note conversion price to $1.00
On Wednesday, JPMorgan analysts raised the price target for Swire Properties stock to HK$21.00 from HK$19.00, maintaining an Overweight rating. The adjustment follows Swire Properties’ disposal of a land parcel in Brickell, Miami for $212 million, with proceeds earmarked for a nearby residential development.
The analysts noted that investors have been anticipating a potential disposal of the Brickell City Centre shopping mall, valued at HK$4.8 billion, which could lead to a revival of the company’s buyback program. However, an official announcement is required before any such revival is expected.
Year-to-date, Swire Properties has delivered a total return of 20%, outperforming the Hang Seng Index’s 19% and the Hong Kong property sector’s 10%. JPMorgan continues to view Swire Properties as a top pick, citing potential improvement in Mainland China’s retail sector in the second quarter of 2025, active capital recycling, and high dividend certainty as key factors.
The new price target is based on a narrower 54% discount to net asset value, reflecting more consistent capital recycling. The analysts project a 5.5% dividend yield for the fiscal year 2025, which is above the historical average but in line with the sector’s average of 5.6%.
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