InvestIdeas

Not vested.

Jardine Strategic delivered a net profit of $1.2 billion for the six months ended June 30 2008, up by 33 percent from $883 million in the year-ago period due to strong earnings growth from Hongkong Land, Dairy Farm and Astra.

Citigroup downgraded Jardine Strategic to "hold" from "buy", and lowered its target price to $19.40 from $20.50.

The bank said the firm will struggle to improve on recent results because many of its assets are heavily exposed to global growth.

Jardine Strategic is a holding company which takes long-term strategic investments in multinational businesses, particularly those with an Asian focus, and in other high quality companies with existing or potential links with the Group.

Its principal attributable interests are in Jardine Matheson (53%), Hongkong Land (49%), Dairy Farm (78%), Mandarin Oriental (73%) and Jardine Cycle & Carriage (68%), which in turn has a 50% interest in Astra.

The Company also has a minority investment in Rothschilds Continuation, the merchant banking house. Jardine Strategic is a member of the Jardine Matheson Group.

DJ MARKET TALK: JPM Cuts Jardine Strategic Target To US$12.50

0235 GMT [Dow Jones] STOCK CALL: JPMorgan cuts Jardine Strategic (J37.SG) target price to U$12.50 from US$20.76, based on discount to net asset value (NAV) reverting back to long-term average of 39%.

Notes company's NAV dominated by value of stakes in Dairy Farm, Hongkong Land; also has stakes in Mandarin Oriental, Jardine Matheson, Jardine Cycle & Carriage.

Maintains Overweight rating as says NAV discount now wider than average, many conglomerates in Asia over the last 12 months seeing similarly large discounts but Jardine Strategic's NAV comprised predominantly by investments in listed shares; "as a result, some investors may view this NAV as more reliable."

But adds company has made no recent shares purchases, does not expect such purchases to resume any time soon as cash conservation has become higher priority due to weak global economic outlook. Shares down 4.0% at US$8.72.

From JPM:-

• Our new Dec-09 price target for Jardine Strategic (JS) is $12.50 (previously Jun-09, $20.76). This is based on a 20% increase in JS’s NAV, and the NAV discount reverting back to its long-term average of 39%. This target implies 27% upside. The vast majority of JS’s NAV is in listed investments.

JARDINE STRATEGIC - Citi raised the price target for Jardine Strategic to $19.50 from $16.40 to reflect the latest market value of the group's subsidaries. But it kept its "hold" rating as it expects the firm's businesses will remain difficult.

Noted that Jardine like SGX are good proxies for STI indexes and gyrates with Mr Market's ups and downs.

Aspellian wrote:Noted that Jardine like SGX are good proxies for STI indexes and gyrates with Mr Market's ups and downs.

Or you can say an illiquid stock that is being used to manipulate the STI...

Published March 6, 2010

Jardine Strategic to buy back 13.9m shares
The company and Jardine Matheson Group more than double their profits for 2009

By JAMIE LEE

JARDINE Strategic Holdings is looking to purchase 13.9 million of its shares for up to US$250 million. Under a share buyback tender, the auto distribution and property investment company yesterday proposed to buy and cancel these shares - which represent about 1.3 per cent of its capital - at a price ranging between US$18 and US$19 per share.

Since this share buyback is through a tender, the final price will be determined by the number of bids offered and the price of each bid, a Jardine spokesman noted. This means the fewer the number of bids, the higher the odds of a bid price that is closer to US$19 per share.

A shareholder who sells his shares at US$18 now will enjoy a 5.39 per cent premium when compared to the stock's closing price in Singapore yesterday of US$17.08. The company said this was part of a strategic capital allocation in the Jardine group and that it aims to maintain a free float of at least 15 per cent.

Jardine Matheson Group, which owns about 81 per cent of Jardine Strategic, has said it would not sell its shares. If all 13.9 million shares in the tender exercise are bought and cancelled by Jardine Strategic, Jardine Matheson's stake in the company would reach about 82 per cent.

The company said shareholders of successfully tendered shares at the record date of the final dividend will still be entitled to receive the payout of 14 US cents per share. The tender offer closes on April 7, after the ex-dividend date of March 17. Jardine Strategic added it did not intend to make another tender above the strike price during the next six months.

The company more than doubled its net profit for the year ended Dec 31, 2009. It posted a net profit of US$1.84 billion for the period, up from US$692 million a year ago. This translates into earnings of US$2.97 per share, compared to the US$1.12 a year earlier. The result was largely thanks to a gain of US$1.89 billion booked under change in fair value of investment properties - including those belonging to Hongkong Land - in 2009, compared to just US$2 million in gains booked a year ago. Full-year revenue rose just 2.44 per cent to US$18.9 billion.

The largest sales contribution continues to come from Astra - an Indonesian motor car and palm oil production player - which recorded a 4.38 per cent dip in revenue to US$9.54 billion.

Jardine Matheson posted a 2009 full-year net profit of US$1.6 billion, more than double 2008's US$666 million. This translates to earnings of US$4.51 per share, up from earnings of US$1.89 per share.

Full-year revenue inched up to US$22.5 billion from US$22.36 billion. The board has also recommended a final dividend of 65 US cents per share.

'We are fortunate that our businesses are mainly deployed in Greater China and South-east Asia, where conditions for growth are more favourable than elsewhere,' said chairman Henry Keswick in its financial statement. 'We are therefore hopeful of another satisfactory performance in 2010.'

Shares of Jardine Matheson closed 1.96 per cent lower, or down 58 US cents to end at US$29 yesterday.

by eauyong » Tue Apr 13, 2010 10:38 am

Recently, made a few rounds trading JSH and was wondering about the strength of this group so took out the AR 2009 and found the sterling performance of this group.

NAV of JSH jumped 80% to USD32.64 from USD18.15.

Not vested. End of the world coming. Up 1.7% !