JARDINE Matheson Holdings on Friday (Jul 28) posted a net profit of US$566 million for the first half of 2023, up 34 per cent from earnings of US$423 million in the year-ago period.

 

The group attributed this to continued strong performance by Astra and DFI Retail, which marked a significant improvement in its results.

 

Earnings per share rose 33 per cent to 1.95 US cents, from 1.47 US cents previously.

 

Astra, which contributed the most to Jardine Matheson&rsquo s earnings, reported net income excluding fair-value adjustments of US$1.2 billion, 20 per cent higher than in the first half of 2022.

 

Its improved performance was seen across most of Astra&rsquo s business divisions, especially its automotive, financial services and heavy equipment and mining businesses.

 

Another top performer in Jardine Matheson&rsquo s portfolio, DFI Retail Group, also returned to the black with a net profit of US$8 million for the first half of 2023, on contributions from its health and beauty division, as well as its convenience division.

 

Meanwhile, Mandarin Oriental posted improved H1 results, with revenue rising 31 per cent to US$260.7 million, led by strong performance of its hotels in Europe and the Middle East.

 

Hongkong Land&rsquo s performance, however, was flat compared with the same period last year, as its residential development business continued to be impacted by lower planned sales completions. The property group reported an underlying profit of US$422 million for H1, marginally down from US$425 million a year ago.

 

Jardine Matheson also noted that its interest in Zhongsheng &ndash an automobile dealership in China &ndash was significantly lower than in 2022 as the business was impacted by lacklustre consumer demand in the mainstream car market and the strong performance of the electric vehicle market in mainland China. 

 

Looking ahead, the group said it remains focused on evolving its portfolio and will recycle capital towards strategic higher-growth initiatives where appropriate. 

 

It will continue investing in business opportunities, such as Astra&rsquo s deal to acquire a 90 per cent interest in two nickel mining and processing businesses as part of its strategy of diversifying into other minerals and renewable energy. 

 

Jardine Cycle & Carriage has also increased its interest in Vietnam-based Refrigeration Electrical Engineering Corporation from 33.6 per cent to 34.4 per cent through on-market purchases.

 

To boost operational excellence, Jardine Pacific&rsquo s Hong Kong Air Cargo Terminals Limited introduced robotics into some of its goods handling operations, while as part of innovation efforts, Jardine Cycle & Carriage embarked on a used car and aftersales partnership with Carro.

 

Ben Keswick, Jardine Matheson&rsquo s executive chairman, said: &ldquo We are encouraged by the results delivered by most of our businesses in the first half and are optimistic that earnings growth will continue for the remainder of the year. 

 

&ldquo The group has a strong balance sheet and will continue to focus on opportunities in its core, growing markets in Asia, to create sustainable long-term growth.&rdquo

 

Jardine Matheson declared an interim dividend of US$0.60 per share, which will be paid out on Oct 11. 

 

JARDINE Matheson Holdings : J36 -0.46% (JMH) said in an interim management statement on Thursday (May 18) that it had achieved a &ldquo strong overall performance&rdquo in the first quarter of the year ended March, but warned that challenges remain from the global economic environment and softening commodity prices.

 

In a statement published on the Singapore bourse, the company said most of its business units performed strongly in Q1 this year, compared to the corresponding quarter last year. 

 

The likes of Astra, DFI Retail Group, Mandarin Oriental and Jardine Pacific all delivered increases in underlying net profit, JMH said. It added that it remains confident in the economic resilience of its markets and believes it is well-positioned to benefit from their recovery.

 

Hongkong Land&rsquo s underlying profit in the first quarter was lower than the same period in 2022 due to reduced contribution from the development properties business, on the back of fewer planned sales completions in mainland China.

 

Jardine Pacific saw improved performance from most of its businesses in the period, compared with the first quarter of last year. 

 

Jardine Restaurants, however, was impacted by softer sales in Hong Kong and the absence of government support received last year. The disposal of the shareholding in Greatview, which was announced in late January, remains on track, subject to regulatory approvals, said JMH. 

DFI Retail Group, meanwhile, saw significantly improved year-on-year performance in the first quarter. This chiefly reflected increased profitability of its associates, in particular a much-improved performance by Maxim&rsquo s.

 

DFI Retail Group&rsquo s subsidiaries also saw improved overall performance, with a recovery in the health and beauty and convenience divisions more than offsetting lower results in the grocery retail division, as consumer buying patterns normalised compared with the first quarter of 2022 and digital investments continued. 

 

Mandarin Oriental recorded an underlying profit in the first quarter of 2023, driven by improved performance from its owned hotels and management business. 

 

JMH said Asia, in particular, benefitted from the removal of travel restrictions. Mandarin Oriental&rsquo s owned hotels performed robustly, particularly in Hong Kong, Tokyo, and Bangkok, with strong rates.

 

Jardine Cycle & Carriage reported growth in the first quarter of 2023, compared to the same period last year, principally due to a higher contribution from Astra. Jardine Cycle and Carriage holds a 50.1 per cent stake in Astra, South-east Asia&rsquo s largest automotive group.

 

Astra reported a 25 per cent uptick in underlying earnings, excluding fair value gains from its equity investments, with improvements across most divisions. 

 

Beyond Astra, Jardine Cycle & Carriage&rsquo s direct motor interests also delivered improved performance, but Thaco and Siam City Cement saw lower profits primarily as a result of challenging market conditions in Vietnam.

 

SINGAPORE shares fell marginally on Tuesday (Dec 20) as concerns over higher inflation levels and potential interest rate hikes plagued markets once again, and took a toll on investor sentiments. 

 

On the local bourse, some 954.9 million shares worth a total of S$926.2 million were traded, with losers beating gainers 318 to 228. The Straits Times Index shed 0.1 per cent or 2.64 points to finish the trading session at 3,253.97.

 

It was a sea of red in stock markets across the region. The dips were led by the Nikkei 225 index, which slipped 2.5 per cent, followed by the ASX 200, which shed 1.5 per cent. Hong Kong&rsquo s Hang Seng Index lost 1.3 per cent, while in South Korea, the Kospi closed 0.8 per cent lower. The KLCI fell 0.7 per cent.

 

SPI Asset Management&rsquo s Stephen Innes said that bearish sentiments are still prevalent among traders: &ldquo Investors are still precariously perched on the cliff edge after recent remarks from the Fed and other hawkish central banks across the globe.&rdquo

 

&ldquo The cumulative effects of global monetary policy tightening will significantly impact equity valuations and, more importantly, global growth.&rdquo

 

On the local bourse, Jardine Matheson Holdings : J36 +1.47% was the top gainer by value, rising 1.5 per cent or US$0.74 to US$51.14.

 

Lenders also booked gains on Tuesday. DBS : D05 +0.29%topped the trio, with a 0.3 per cent or S$0.10 gain to S$34.21. UOB : U11 +0.26%added 0.3 per cent or S$0.08 to S$31.04, while OCBC : O39 +0.66%rose 0.7 per cent or S$0.08 to S$12.29.

 

For the second day in a row, Nio : NIO -5.5%was the biggest loser. The stock fell 5.5 per cent or US$0.64 to US$11.00.

 

Sembcorp Marine : S51 0% was the most traded counter by volume, with just under 90.8 million shares changing hands. The stock closed flat at S$0.14.

 

Other heavily traded counters were Genting Singapore : G13 -1.59%, Golden Agri-Resources : E5H 0% and The Place Holdings : E27 -8.7%.

JARDINE Matheson : J36 +1.56% on Thursday (Jul 28) reported a 22 per cent increase in H1 2022 underlying net profit to US$747 million from US$615 million a year ago.

 

In a regulatory filing after market close, the conglomerate also announced a 4 per cent rise in revenue for the period to US$18.2 billion from US$17.5 billion a year ago.

 

The growth in revenue was driven by Astra&rsquo s performance, Jardine Cycle & Carriage and Hongkong Land&rsquo s improved underlying profit. Mandarin Oriental also delivered a lower underlying loss for H1.

 

This resulted in Jardine Matheson reporting earnings of US$423 million in the first half, reversing a loss of US$117 million in 1H 2021. South-east Asia contributed to the bulk of the conglomerate&rsquo s profit at 58 per cent, while 37 per cent came from China in H1.

 

The directors have declared an interim dividend of US$0.55 per share, up 25 per cent from a year ago.

 

The group expects that earnings growth will substantially moderate for the full year, as Covid-19 continues to impact its businesses, particularly in Hong Kong and on the Chinese mainland,&rdquo said Ben Keswick, executive chairman, Jardine Matheson.

JPMorgan Chase & Co. documents and testimony are being sought in a suit alleging Hong Kong conglomerate Jardine Matheson Holdings Ltd.&rsquo s US$5.5 billion ($7.65 billion) buyout of a subsidiary was &ldquo coercive and fundamentally unfair&rdquo to minority shareholders.

 

In a filing Wednesday in Manhattan federal court, investors in the subsidiary, Jardine Strategic Holdings Ltd., asked for permission to file a subpoena on JPMorgan. The bank&rsquo s JPMorgan Cazenove Ltd. unit was the lead financial adviser to Jardine Matheson when it took the subsidiary private in April 2021.

 

Minority shareholders, who held about 15% of Jardine Strategic, have previously complained that Jardine Matheson&rsquo s offer price represented a US$1 billion discount to the value of their holdings.

 

Maso Capital Investments Ltd. and Singapore investor Clifford Cheah King Mun said they are seeking to use evidence from JPMorgan and other advisers on the buyout in a proceeding in Bermuda Supreme Court aimed at determining the fair value of their shares in Jardine Strategic. Maso and Cheah filed a similar petition in Delaware federal court last month seeking evidence from Evercore Inc., a UK unit of which produced a valuation opinion on the deal.

 

&lsquo Noble House&rsquo

 

One of Hong Kong&rsquo s last remaining British trading houses, Jardine Matheson was the inspiration for James Clavell&rsquo s novel &ldquo Noble House.&rdquo The conglomerate is still a major player throughout Asia, with businesses including real estate, automobiles, hotels and retail. The buyout created a single holding company for its subsidiaries.

 

Founded by Scots William Jardine and James Matheson, the group has been controlled for generations by the Keswick family and is currently led by executive chairman Ben Keswick. Minority shareholders in Hong Kong have long complained of their lack of power in the face of family control of the territory&rsquo s largest businesses.