SWIRE Pacific has taken the investment community by surprise, announcing better than expected net profits of $4.658 billion for 1993, up 5.4 per cent on 1992.
Given Cathay Pacific's dismal performance last year, most brokerages had not expected to see any profit growth from the British-controlled hong.
The group's overall performance was buoyed by another strong showing from its thriving real estate arm, Swire Properties, whose sprawling property investment portfolio benefitted significantly from Hong Kong's spiralling office and residential rental prices.
It reaped more than half of Swire Pacific's total net profits, while Cathay's contribution is thought to have slumped to around a third.
Increased rental returns went a long way to compensate for a 23.8 per cent slide in attributable profits from Cathay Pacific and substantially reduced exceptional profits from the sale of investment properties.
The good news, announced at lunchtime yesterday, sent Swire Pacific's A share price climbing $1.50, or two per cent, in the afternoon to $55.00.