Jardine Matheson

[winston]

not vested

Time: 8:58AM
Exchange: SGX
Stock: JMH USD(J36)
Signal: Bearish MACD Centerline Crossover
Last Done: $50.15

Source: UOBKH

[winston]

not vested

Jardine Matheson / Jardine Strategic

FY15 below expectations on Dairy Farm weakness; prefer JS over JM

Jardine Matheson (JM)/Jardine Strategic (JS) reported underlying FY15 net profits of US$1,363 mn/US$1,428 mn, down 11% YoY and below consensus expectations.

While JC&C (ex-Astra) and Jardine Pacific performed better than expectations, this was
more than offset by weakness in Dairy Farm and Astra.

Dairy Farm's FY15 underlying profit of US$428 mn (-14% YoY) was below consensus, as sales declined 3% YoY and EBIT margin remained weak at 4.2% in 2H15.

Food and Health saw lower profit YoY due to weakness in Singapore and Malaysia, while Health
and Beauty faced headwinds in Malaysia and mainland China.

Management expects profitability in 2016 to be impacted by economic conditions in China and Indonesia. JM will pay out a final DPS of US¢107 (total DPS US¢145, flat YoY), while JS will pay out a final DPS of US¢20 (total DPS US¢28.5, up 6% YoY).

We maintain our UNDERPERFORM on JM as the stock is currently trading near NAV, which we believe is unjustified given headwinds in Dairy Farm.

We prefer JS (NEUTRAL) which is trading at a 26% discount to NAV vs historical average of 34%.

Source: CS

[winston]

not vested

Jardine Matheson Holdings will be added to the STI while Sembcorp Marine will be removed.

The changes will be effective on Sept 19.

[winston]

not vested

We continue to prefer JS to JM, based on the historically wide 20% relative difference in the discounts to NAV of these two head stocks, as shown in the third chart on the left (JM and JS largely draw their NAVs from the same pool of assets, as shown in Fig 3). The individual discounts to NAV for JM (14%) and JS (34%) and their respective trading bands are shown in Figs 1-2.

JM is the more liquid stock of the two and, by design, pays higher dividends, but we think our target discounts to NAV already incorporate that concept. We are using -18% for JM and -28% for JS (Fig 30), which implies a 10% relative gap, in line with the historical average.

In this note, we are also applying our annual 200bps tightening of our target discounts to NAV (which explains the higher increase in our JM and JS price targets vs. the increases across the subsidiaries; for our methodology please see this note).

The discount to NAV for JM has tightened recently, which we think is in part due to recent index inclusions, including MSCI HK and Singapore’s STI.

If JM’s current 14% discount to NAV proves lasting, it would imply a price target of US$64.10 (8% TSR) in our SOTP framework.

If we then assume a fair 10% relative 10% discount gap between JM and JS, as above, such a tightening of JM’s discount would imply a US$39.80 per share fair value for JS (21% TSR)

Source: Macquarie

[winston]

not vested

Maintain UNDERPERFORM for JM and NEUTRAL for JS

JM is trading at a 12% discount to NAV, vs its historical average of 23%.

JS is trading at a 27% discount to NAV, vs its historical average of 34%.

Source: CS

[winston]

not vested

Time: 9:23AM
Exchange: SGX
Stock: JMH USD(J36)
Signal: Support - Broken with High Volume
Last Done: $53.48

Source: UOBKH

[winston]

not vested

Jardine Matheson: Hong Kong's Value Investing Darling

by Holmes Osborne

Summary
Jardine is a collection of dozens of companies, ranging from hotels to cement.
Now is not the time to buy but when Asia goes on sale, it will be.
The dividend yield is 2.37%.

Jardine Matheson (OTCPK:JMHLY) is a Hong-Kong based conglomerate that was founded in 1832. This trading house, known as a "hong", is my favorite way to invest in Asia and Hong Kong. The company has its fingers in almost as many pies at Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B). This is the third time I've written on the company for Seeking Alpha.

There are 374 million shares, the stock trades at $61.05, and the market cap is $22.8 billion. There is a cross-holdings with Jardine Strategic, which holds 57% of Matheson. This was set up in the 1980s to thwart a hostile takeover.

The dividend is $1.45 and the dividend yield is 2.37%. We won't use price to earnings ratios as it is a conglomerate. Also, in Hong Kong accounting, be careful when looking at revenues and net income. The accounting standards allow real estate appreciation to be figured in. One must look at underlying income, which excludes real estate.

Jardine owns shares in five publicly traded companies:
1. Hong Kong Land with a 50% interest worth (OTCPK:HNGKY) $7.8 billion,
2. Dairy Farm with a 78% interest worth (OTCPK:DFILF) $8.5 billion,
3. Mandarin Oriental Hotels with a 74% interest worth (OTCPK:MNOIY) $1.2 billion,
4. Jardine Cycle & Carriage with a 74% interest worth (OTCPK:JCYGY) $8.22 billion, and
5. Jardine Lloyd Thompson with a 42% share worth (OTC:LLTHF) $1.13 billion.
Two wholly-owned divisions, Pacific and Jardine Motors, are probably worth $2 billion or so. This totals $28.85 billion.

I've written about Jardine in 2016 and 2015. Jardine was founded in the early 1800s by Scottish traders. Hong Kong was taken from the Chinese by the British. The Scottish thrived there as detailed in the famous books Noble House and Taipan by James Clavell.

These fictional novels are based on Jardine Matheson and Swire Pacific. Two Hongs, trading houses, as they are called. The companies are controlled by the Keswick family, progeny of the founders.

Source: Seeking Alpha

http://seekingalpha.com/article/4040131 ... ng-darling

[winston]

not vested

Jardine Matheson posts 39% rise in FY16 earnings to $3.5 bil

By Dannon Har

SINGAPORE (March 2): Jardine Matheson Holdings saw a 39% rise in FY16 earnings to US$2.5 billion ($3.5 billion) from US$1.8 billion a year ago.

The stronger bottomline was led by the group’s US$1.1 billion share of an increase in the value of Hongkong Land’s investment property portfolio.

(See also: Hongkong Land reports 66% rise in FY16 earnings to $3.3 bil on property investment revaluation gains)

Group revenue for FY16, including that from associates and joint ventures, rose 11% to US$72.4 billion from US$65.3 billion.

Jardine Motors enjoyed a very good year as Zung Fu’s mainland China operations achieved increased sales and higher margins.

Jardine Lloyd Thompson also reported a good result set against the continued challenging economic and trading environment.

Hongkong Land had another good year as its commercial markets remained relatively firm and there was another steady contribution from residential property developments.

Dairy Farm produced sound profit growth in retail markets that remained highly competitive.

(See also: Dairy Farm full-year earnings up 11% to US$469 mil)

Mandarin Oriental saw lower earnings as its hotels saw weaker demand in the key cities of Hong Kong, London and Paris.

(See also: Mandarin Oriental posts 38% decline in FY16 earnings to $77.9 mil)

Jardine Cycle & Carriage produced a satisfactory performance in 2016 as Astra’s results improved, the Indonesian rupiah exchange rate was stable, and there were increased contributions from its other interests.

(See also: Jardine Cycle & Carriage posts 2% rise in FY16 earnings to US$702 mil)

The board has recommended a final dividend of US$1.12 per share. This brings full year dividend up 3% to US$1.50.

Shares of Jardine Matheson closed 2.3% higher at US$65.60 on Thursday.

Source: The Edge

http://www.theedgemarkets.com.sg/smr/?q ... 6-87358173

[winston]

not vested

Jardine Matheson's H1 profit more than doubles to US$2.08b

by LYNETTE KHOO

JARDINE Matheson Holdings' net profit for the six months ended June 30 more than doubled to US$2.08 billion from, US$984 million amid a surge in fair value change of investment properties.

Its underlying profit for the first half of 2017 rose 20 per cent from a year ago to US$765 million. Revenue was 8 per cent higher at US$19.4 billion.

"Following a first half with good trading performances across the group, the level of profit growth in the second half is likely to be tempered due to fewer residential completions expected in Hongkong Land and price competition in a number of the group's automotive markets," said group chairman Henry Keswick.

The Board has declared an increased interim dividend of 40 US cents per share, up from 38 cents in the year-ago period.

Incorporated in Bermuda with standard listing on the London Stock Exchange, Jardine Matheson Holdings directly owns Jardine Pacific and Jardine Motors as well as 42 per cent stake in Jardine Lloyd Thompson.

It indirectly owns stakes in Hongkong Land, Dairy Farm, Mandarin Oriental, and Jardine Cycle & Carriage, through its group holding company Jardine Strategic. Jardine Cycle & Carriage, in turn, owns a 50 per cent stake in Astra.

Source: Business Times

http://www.businesstimes.com.sg/compani ... =EREC-16-4[BT_Newsletter_Debrief]-20170804-[Jardine+Matheson%27s+H1+profit+more+than+doubles+to+US%242.08b]&xts=538380

[winston]

not vested

Jardine Strategic and Jardine Matheson report 50% higher FY17 earnings

By PC Lee

SINGAPORE (Mar 6): Jardine Strategic and Jardine Matheson reported FY17 earnings rose by half to US$4.1 billion and US$3.8 billion respectively from a year ago.

Jardine Strategic said it saw strong performances from Astra and Hongkong Land as well as Jardine Motors, Jardine Pacific and Jardine Lloyd Thompson which are directly held by 57% owned Jardine Matheson.

However, both saw lower contributions from Dairy Farm, Mandarin Oriental and Jardine Cycle & Carriage’s non-Astra businesses.

Jardine Matheson's earnings included a US$1.9 billion share of increases in property valuations, principally Hongkong Land’s investment properties in Hong Kong, and US$268 million of other net non-trading gains.

Meanwhile, Jardine Strategic's earnings was boosted by a US$2.3 billion share of increases in property valuations, also from Hongkong Land, and US$195 million of other net non-trading gains.

Jardine Strategic's revenue for FY17, together with revenue from Jardine Matheson, associates and joint ventures, was US$83.8 billion, 16% higher compared to a year ago. The group’s consolidated revenue for FY17 was US$31.6 billion, an increase of 7%.

Jardine Matheson's gross revenue for FY17, which included 100% of revenue from associates and JVs, was US$83.8 billion, 16% higher compared to a year ago. Group’s consolidated revenue for FY17 was US$39.5 billion, an increase of 6%.

Jardine Strategic is recommending a final dividend of 22.50 US cents per share, bringing full year dividend of 32 US cents per share, up 7% from the prior year.

Jardine Matheson is proposing a final dividend of US$1.20 per share, which produces a full year dividend of US$1.60 per share, also uo 7% from last year.

Shares in Jardine Strategic closed 70 cents higher at US$39.30 while shares in Jardine Matheson closed 80 cents higher at $62.80.

Source: The Edge

https://www.theedgesingapore.com/jardin ... 0-91832885