CLSA released a research report indicating that SWIRE PACIFIC A reported a 11% year-on-year increase in recurring profit to HK$5 billion for the second half of last year, exceeding expectations. The final dividend was HK$2.5 per share, a 19% year-on-year rise, also above forecasts. The firm raised its recurring profit forecasts for the group for this year and next by 8% and 7% respectively, to HK$10.9 billion and HK$12.2 billion. Consequently, CLSA increased its target price from HK$74 to HK$91, while maintaining an "Outperform" rating. The report noted that SWIRE PROPERTIES and CATHAY PACIFIC are well-positioned to drive profit growth for the conglomerate. It further stated that SWIRE PACIFIC's robust cash flow, strong balance sheet, and stable dividend growth make it an attractive defensive income asset for investors.
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