Jardine C&C    Last:28.67    -0.16

why buy Jardine C&C to get its unit astra indonesi

Jardine Cycle & Carriage Limited(SGX:C07) stock is about to trade ex-dividend in four days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase Jardine Cycle & Carriage' s shares on or after the 30th of August, you won' t be eligible to receive the dividend, when it is paid on the 30th of September. 
The company' s upcoming dividend is US$0.18 a share, following on from the last 12 months, when the company distributed a total of US$0.52 per share to shareholders. Looking at the last 12 months of distributions, Jardine Cycle & Carriage has a trailing yield of approximately 3.6% on its current stock price of SGD19.83. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing. 
View our latest analysis for Jardine Cycle & Carriage 
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately Jardine Cycle & Carriage' s payout ratio is modest, at just 44% of profit. A useful secondary check can be to evaluate whether Jardine Cycle & Carriage generated enough free cash flow to afford its dividend. The good news is it paid out just 15% of its free cash flow in the last year. 
It' s positive to see that Jardine Cycle & Carriage' s dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. 

chartistkao1      ( Date: 13-Sep-2021 16:13) Posted: Astra profit contributions propel Jardine Cycle & Carriage to H1 earnings growth THU, JUL 29, 2021 - 8:15 PM ANNABETH LEOW JARDINE Cycle & Carriage (Jardine C& C), known in Singapore as a Mercedes-Benz dealer, on Thursday reported that first-half underlying profits more than doubled on the back of looser Covid-19 restrictions in its regional markets. Its chairman Ben Keswick warned, however: " Although business conditions have since improved, the group remains cautious about performance in the second half of 2021, given the worsening Covid-19 situation in a number of countries across the region." Underlying earnings, which excludes non-trading items, jumped to US$346.5 million for the six months to June 30, from US$137.7 million before. The year-on-year growth, while broad-based, was led by contributions from Indonesian conglomerate Astra.

 

 

Word on the grapevine is that the Keswick family behind the Jardine group opened the door to the partnership between MCL Land and CDL to jointly develop Singapore residential projects.
Beyond that, how can CDL and Hongkong Land take their partnership to the next level?
Within Singapore, the two could be suitable partners if the Urban Redevelopment Authority were to put up for tender white sites in the immediate neighbourhood of the Marina Bay Financial Centre (an office, residential and retail project co-developed by Hongkong Land). Or if the white site next to the Sands Expo and Convention Centre were to be offered for sale.
There are also opportunities for the two groups to cooperate beyond Singapore.
Hongkong Land may be most famous for its ownership of 12 interconnected prime commercial buildings in the heart of Hong Kong' s financial district in Central, but the group has also been developing residential and mixed-use projects on the Chinese mainland. It has a presence in seven key markets: Chongqing, Shanghai, Nanjing, Hangzhou, Chengdu, Beijing and Wuhan. It also operates in South-east Asia.
As at the end of last year, the group' s attributable interest in the developable area of its projects totalled 9.1 million square metres.
Early last year, Hongkong Land clinched a 23-hectare plum mixed-use site on the West Bund of Shanghai. With a planned gross floor area of 1.09 million sq m (or 11.7 million sq ft), the project comprises five neighbourhoods and 28 land parcels.
The site is along the Huangpu River. Based on information on the Hongkong Land website and in its filings, the development is planned to comprise some 660,000 sq m of offices, 210,000 sq m of retail space, 170,000 sq m of luxury residences, 55,000 sq m of five-star hotels, a 30,000 sq m convention centre, and 10,000 sq m of sports facilities. Hongkong Land classifies the project under investment properties there will also be a trading component.
The West Bund project is expected to be constructed over multiple phases stretching until 2027. It will be jointly developed with a strategic investor headquartered on the Chinese mainland and a government-held special purpose vehicle, with Hongkong Land retaining a 43 per cent interest in the joint venture as well as ongoing project and asset management rights.
For years, CDL had struggled to grow its business in China. Its top management thought it had finally discovered a golden opportunity in 2019 to scale up its presence in the world' s most populous country by taking a stake in Sincere Property Group, based in Chongqing and headquartered in Shanghai. CDL in April 2020 announced the acquisition of a 51.01 per cent stake in the heavily indebted group founded by Wu Xu, whom CDL' s chief executive Sherman Kwek had known for a decade.
But Sincere' s liquidity challenges mounted following China' s implementation of the " three red lines" policy to cap borrowings for property developers. CDL also discovered a 95 per cent drop in the revalued net asset value of Sincere as at April 30, 2020, when comparing China' s accounting standard against the draft Singapore Financial Reporting Standards (International).
This resulted in CDL announcing in February this year that it had booked a S$1.78 billion impairment on its investment in Sincere Property for the year ended Dec 31, 2020, effectively writing down 93 per cent of its S$1.9 billion investment in Sincere.
CDL has stressed that it has ring-fenced its financial exposure to its investment in Sincere and will not be supporting Sincere' s continuing financial obligations. This was reiterated earlier this month when Sincere was slapped with a bankruptcy claim by a creditor. But the prospects of expansion into China via the Sincere investment have clearly dimmed.
Meanwhile, however, the business opportunity of developing and selling residences to China' s burgeoning middle class and increasingly affluent population is just too big for CDL to ignore. The company may find it more feasible to partake in this opportunity alongside a blue-chip partner such as Hongkong Land.
 

 

" The worst for Central office market should be over with relatively stable vacancy and moderating rental decline," the team wrote. " We believe that investment value is re-emerging following the recent share price retreat."
Hongkong Land shares were up 0.7 per cent or US$0.03 at US$4.57 as at 3.32pm on Monday.
 

 

jardine can not rely on hedge funds to short its units to way below the ciggarette butt value " The group has and remains committed to retaining a strong balance sheet which provides financial resilience through the cycle," Hongkong Land said.
The company, which is a member of the Jardine Matheson Group, owns and manages office and luxury retail properties in Hong Kong, Singapore, Beijing and Jakarta. 
It had  narrowed its net loss to US$863.2 million for the half-year ended June 30, from US$1.8 billion a year ago. The loss included net non-cash losses of US$1.3 billion arising from the revaluation of the group' s investment properties due to lower open market rents. 
Net asset value (NAV) per share as at end-June fell to US$14.75 from US$15.30. This means Hongkong Land is currently trading at a third of its NAV. 
Lim & Tan Securities on Tuesday said it continues to reiterate " accumulate"   on Hongkong Land. Its consensus target price stands at US$5.81, representing an upside of 22.8 per cent from Tuesday' s closing price.
The brokerage was referencing comments made by Colliers International that Hong Kong' s office sector will remain a " tenant' s market"   in the next 12 months. The property firm is projecting a correction in office rents before recovering from 2022 onwards.
The group' s properties in Hong Kong are among the most prestigious, Lim & Tan said, noting tenants such as JPMorgan, KPMG and the Hong Kong Exchanges & Clearing. 
The brokerage added that valuations for the stock are " extremely undemanding" . Hongkong Land is trading at a forward price-to-earnings ratio of 10 times and is also trading at 0.3 times its book value, with an attractive 5.35 per cent dividend yield, Lim & Tan said. 
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why HK land share surge as much as 13.6% two days ago
soon in 2023 we will see HONG KONG -- Jardine Matheson Holdings Ltd. , one of Asia' s oldest trading companies, yesterday reported a 49% jump in its first-half earnings, mainly because of a revaluation of the investment properties at its subsidiary Hongkong Land Holdings Ltd.
Jardine Matheson said net profit rose to US$672 million from $450 million in the first half of 2004, buoyed by a $375 million gain as Hongkong Land' s investment-property portfolio benefited from Hong Kong' s soaring real-estate prices.
Jardine Matheson also booked increased contributions from supermarket retailer Dairy Farm International Holdings Ltd. and Singapore-based motor-vehicle distributor Jardine Cycle & Carriage Ltd. , on the back of strong gains at Indonesian affiliate PT Astra International.
That helped offset declines wrought by weaker markets at U.K. insurer Jardine Lloyd Thompson Group PLC and wholly owned Jardine Pacific, which saw its construction company, Gammon, suffer losses.
Jardine Matheson Managing Director Percy Weatherall expressed " cautious optimism" over the group' s prospects for the full year, noting that the economies of Hong Kong, China, Indonesia and other Asian markets in which the company operates are performing relatively well.
Stripping out the value of the investment properties but including exceptional items, Jardine' s underlying first-half profit of $232 million was up 18% from last year' s $197 million.
Tuesday, Hongkong Land, the dominant commercial landlord in Hong Kong' s upmarket Central business district, reported nearly flat interim underlying profit of $105 million, as higher rents and lower financing charges offset a slump in residential sales.
Mr. Weatherall said 78%-owned Dairy Farm, which reported a 23% rise in its underlying first-half net profit, is " firing on all six cylinders."
He said Jardine Cycle & Carriage' s investment in Indonesia vehicle manufacturer Astra " is going very well too." The car distributor Tuesday posted a 9% rise in first-half net profit on higher sales at Astra.
Mr. Weatherall said Jardine was taking a cautious stance toward expanding the operations of 75%-owned hotel operator Mandarin Oriental International Ltd. into China. The company has no operations in the country at the moment, though he noted a mainland hotel deal may be in the offing in the short to medium term.
Apart from Jardine Lloyd Thompson, which Tuesday reported a 32% drop in its first-half pretax profit, Jardine Matheson' s units are mainly held through 80%-owned Jardine Strategic Holdings Ltd. Jardine Strategic in turn owns 53% of Jardine Matheson.
Yesterday, Jardine Strategic reported a first-half net profit of $784 million, up from $503 million a year earlier.
Mr. Weatherall said Jardine Strategic' s $185 million purchase of a 20% stake in Rothschilds Continuation Holdings, a holding company within the Rothschild Group, marked Jardine' s return to merchant banking.
" We think this has good prospects as a business, especially in Asia," he said, but he added that the move shouldn' t be viewed as a return to the fund-management business after Jardine Matheson sold Jardine Fleming to Chase Manhattan in 2000.
Jardine Matheson, Jardine Strategic, Hongkong Land, Dairy Farm, Mandarin Oriental and Jardine Cycle & Carriage are all listed in Singapore. Jardine Lloyd Thompson, Jardine Matheson and Jardine Strategic also have London listings.
The largely British-controlled group delisted its shares as well as those of units from Hong Kong in 1994, ahead of the city' s handover to China, and it moved them to Singapore. Most of its earnings are from the Asian-Pacific region, especially Hong Kong.
&mdash Alastair McIndoe contributed to this article.
 

 

jardine C& C target $35 price by 2023 C& C also is a dealer for Kia Motors and Mitsubishi Motors cars in Singapore. But the loss of the Mercedes-Benz wholesale distributorship has dealt a hard blow to its share price, and for most investors its Astra stake hasn' t filled the void.
From a high of 11.40 Singapore dollars (US$6.49) in April 1999, C& C shares fell more than 50% to S$5.15 by the end of that year after DaimlerChrysler announced it was canceling the distribution license. By the close of 2001 its share price had fallen to S$3.08. The stock has recouped some its losses since then, closing Friday at S$3.64, up 7.1% since the start of 2003. Singapore' s benchmark Straits Times Index, meanwhile, is down about 7% so far this year.
Last year, C& C' s net profit shot up to S$231 million, from S$120.5 million in 2001. Astra' s contribution to net profit rose 74% to S$184.9 million as the Indonesian auto maker boosted sales and slashed the cost of its U.S.-dollar debt repayments with the help of a stronger rupiah.
But the big jump in earnings hasn' t generated much enthusiasm for C& C' s shares. Its stake in Astra, which makes and distributes Toyotas in Indonesia, still fails to impress the market.
" It' s a bit like you order a Mercedes-Benz and they deliver a Toyota," said a director with a regional fund-management company. " But it' s more than just different car brands. Investors buying into [Singapore' s] stability will find themselves exposed to [Indonesia' s] volatility," he said.
The company begs to differ, saying its stock offers the best of both worlds exposure to Indonesia' s fast-growing auto market while avoiding the worst of that country' s notorious volatility. " C& C has more stable earnings, as there is still volatility in Indonesia," said finance director Neville Venter at a news conference to announce C& C' s earnings two weeks ago.
The economic downturn in C& C' s home market of Singapore has only added to its growing dependence on Astra. Earnings from C& C' s motor operations, excluding Astra, fell 18% in 2002 to S$53 million, mainly because of weakness in Singapore. C& C' s sales of passenger cars in Singapore fell 22% to 8,486 units last year, and its market share fell to 13% from 16%.
But most analysts aren' t completely negative on the stock. Teo Hiang Boon, an analyst at GK Goh, recommends a " hold," while Jesvinder Sandhu, an analyst at OCBC Investment Research, gives it a " market perform" rating.
C& C' s shares also trade at a discount to Astra' s, according to Sherry Tan, chief investment officer at Morley Fund Management. " If you buy [directly] into Astra, you don' t get this discount," she said. But investors need to consider the risks associated with investing in Indonesian shares, cautions Ms. Tan.
Surprisingly, Mr. Liew at the Daiwa Institute of Research has a " speculative buy" on C& C, but his rating, like Mr. Sandhu' s at OCBC, has little to do with the company' s fundamentals. Instead, they see the possibility of gains should Jardine decide to sell its C& C stake or restructure the company.
Write to Abdul Hadhi at [email protected]
 

 

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