On Aug 2, Jardine Cycle & Carriage (Jardine C& C) : C07 -2.16% group managing director Benjamin Birks acquired 19,000 shares at S$33.90 per share. This increased his direct interest in the South-east Asia investment holding company of the Jardine Matheson Group from 25,000 shares to 44,000 shares. This represents a 0.01 per cent direct interest in the company. His previous 25,000 shares were acquired on Mar 19, 2021, at S$22.77 per share.

 

Birks was appointed group MD in October 2019, and leads the long-term portfolio strategy of the group. This includes having direct oversight over its sustainability strategy. He joined Jardine Matheson in 2000 and has held senior positions within the retail, automotive, business outsourcing and IT businesses of Jardines. Prior to his current appointment, he was the chief executive of Jardine International Motors, Zung Fu Group and Jardine Pacific between 2012 to 2019. Birks is a commissioner of Astra and United Tractors, and a director of Thaco. He is also the chairman of Mindset, a registered charity of Jardine Matheson in Singapore, and was previously a director of Siam City Cement and Refrigeration Electrical Engineering Corporation.

 

On Jul 28, Jardine C& C reported its H1 FY23 results, which saw higher contributions from its Astra and Direct Motor Interests. After accounting for non-trading items, which mainly comprised gains from the sale and leaseback arrangement in respect of Jardine C& C Singapore&rsquo s properties, and unrealised amounts arising from the revaluation of the group&rsquo s equity investments, the group&rsquo s H1 FY23 profit attributable to shareholders was US$648 million, compared to US$487 million in H1 FY22.

 

At the 2023 annual general meeting on Apr 28, Jardine C& C was asked about its positioning with regard to the vehicle electrification trend. Birks highlighted that Jardine C& C was focused on the transition to electric vehicles (EVs). He added that the Indonesian market is still in the early days of the EV journey, and Toyota is committed and working closely with Astra to deliver the right product. In Singapore, Birks maintained that Mercedes-Benz is committed to purely EVs for the luxury segment, which presents an opportunity. Jardine C& C maintains its interests are closely aligned with the dynamic development of the region, where it maintains market-leading businesses in six countries across eight sectors, aligned to its investment themes of urbanisation and the emerging consumer class.

 

Jardine Cycle & Carriage' s H1 FY23 profit attributable to shareholders was US$648 million, compared to US$487 million in H1 FY22. 

 

FOR the five trading sessions that spanned Jul 28 to Aug 3, the Straits Times Index (STI) declined 1 per cent while the Hang Seng Index declined 0.4 per cent and the FTSE Bursa Malaysia KLCI declined 0.6 per cent.

 

Institutions were net sellers of Singapore stocks over the five sessions with S$73 million of net outflow. Stocks that booked the highest net institutional outflow over the five sessions included Singapore Airlines : C6L +0.28%, Frasers Logistics & Commercial Trust : BUOU 0%, Genting Singapore : G13 -0.54%, Jardine Matheson : J36 -1.28%, CapitaLand Investment : 9CI -0.6%, Venture Corporation : V03 -0.14%, Mapletree Pan Asia Commercial Trust : N2IU -0.62%, Suntec Reit : T82U -0.79% and Sheng Siong Group : OV8 +0.63%. Meanwhile United Overseas Bank : U11 -3.42%, Oversea-Chinese Banking Corporation : O39 -0.77%, Yangzijiang Shipbuilding : BS6 +1.94%, iFast Corporation : AIY +2.11%, ComfortDelGro Corporation : C52 -0.79%, Thai Beverage : Y92 -0.83%, DBS Group Holdings : D05 +1.45%, CapitaLand Integrated Commercial Trust : C38U -1%, Keppel Corporation : BN4 -0.69% and Seatrium : S51 +0.75% booked the highest net institutional inflow over the five sessions.

 

On the new Thailand blue-chip Singapore Depository Receipt (SDR) front, all three SDRs, comprising Airports of Thailand (AOT), CP All and PTT Exploration & Production (PTTEP) attracted net buying interest from individual investors for the second consecutive month in July. The largest inflows for the month were booked by CP All SDR while PTTEP generated the most price gains of the trio, on the back of the crude oil price gains. PTTEP reported on Jul 31 that its Q2 FY23 profit increased 2.1 per cent from Q2 FY22, with the company announcing an interim dividend of 4.25 baht payable in August 2023. PTTEP SDR holders on SGX : S68 +1.79% will be entitled to the distribution and will receive the proceeds in Singapore dollars. CP All and AOT are slated to announce earnings on Aug 10 and Aug 11, respectively.

 

Share buybacks

There were four primary-listed companies conducting share buybacks over the five trading sessions through to Aug 3 with a total consideration of S$11.4 million.

 

JARDINE Cycle & Carriage : C07 +1.19% posted a net profit of US$648 million for the first half ended Jun 30, 2023, a 33 per cent increase from a year ago, following higher contributions from Astra and the direct motor interests business segment.

 

The group&rsquo s revenue rose 9 per cent to US$11.7 billion, from US$10.7 billion the year before.

 

Earnings per share was US$1.64, increasing from US$1.23 a year ago.

 

The board has recommended an interim dividend of 28 US cents per share, unchanged from H1 2022, to be paid out on Oct 6.

 

Jardine C& C said Astra&rsquo s automotive segment recorded higher sales volumes. Net income for the segment rose 33 per cent to US$379 million.

 

Car sales were 7 per cent higher, while sales of Astra Honda motorcycles were 56 per cent higher as the unit faced production constraints the previous year, caused by semiconductor supply issues.

 

Net income from Astra&rsquo s financial services business rose 32 per cent to US$255 million, on higher contributions from the consumer finance business.

 

Net income from the heavy equipment, mining, construction and energy segment increased 11 per cent to US$459 million. During the six months, heavy equipment sales and mining contracting continued to benefit from higher coal prices.

 

Jardine C& C&rsquo s direct motor interests contributed US$35 million in profit, up 22 per cent. Cycle & Carriage Singapore had lower car sales volumes due to a tightened COE (Certificate of Entitlement) cycle.

 

But Tunas Ridean in Indonesia contributed 30 per cent more profit than a year ago, on better volumes across its automotive, financial services and leasing businesses. Cycle & Carriage Bintang in Malaysia had higher new car sales volumes.

 

Truong Hai Group Corporation in Vietnam, however, saw profit contribution plunge 72 per cent. Automotive profits were significantly reduced, as the Vietnam market was impacted by weaker economic and consumer sentiment, and greater competitive pressure.

 

Profit from Jardine C& C&rsquo s other strategic interests was down 15 per cent to US$29 million, dragged mainly by Siam City Cement, which continued to be impacted by high energy costs.

 

The group said economic uncertainties remain, but expects progress to continue into the second half of the year.

MAINBOARD-LISTED Jardine Cycle & Carriage : C07 +0.41% (C& C) and used-car tech platform Carro announced a strategic partnership worth &ldquo over US$60 million&rdquo on Friday (Jun 16).

 

Under the partnership, Carro will acquire a stake in Jardine&rsquo s used-car subsidiary, Republic Auto, while Jardine C& C will acquire a stake of equal value in Carro.

 

The tie-up aims to play on the respective strengths of each entity, with Jardine C& C as an established automotive player with extensive infrastructure and expertise, and Carro as a technology-driven company with multi-platform experience. It is the first of its kind for used cars and aftersales between an established automotive group and a technology platform in the region. 

 

Jardine will appoint Wilfrid Foo, its managing director for direct motor interests, as its representative to Carro&rsquo s board. Aaron Tan, the chief executive of Carro, will represent his company on the board of Republic Auto.

 

In a joint statement, the companies said the deal is worth &ldquo over US$60 million&rdquo , but did not provide a specific figure.

 

They added that the partnership will &ldquo combine the best elements of the analogue and digital ecosystems of the used-car and aftersales space&rdquo , and help strengthen business operations for the two companies in Singapore and Malaysia.

 

Foo said the partnership will help Jardine C& C&rsquo s plans to go beyond car wholesale and retail, and into a &ldquo larger ecosystem&rdquo that includes financing, insurance and aftersales. Tan said that Carro will benefit from Jardine&rsquo s &ldquo strong networks and deep understanding of the region&rdquo to help stay ahead of its competitors.

 

Responding to queries from The Business Times, a Jardine C& C representative said the company anticipates &ldquo enhanced offerings&rdquo from the partnership, such as a wider variety of used cars and an improved &ldquo online-to-offline customer experience&rdquo , in the coming months.

 

Carro will gain access to a wider range of used cars through Republic Auto, especially in the premium or luxury segments. Jardine C& C holds the dealership rights for multiple brands, including Mercedes-Benz in both Singapore and Malaysia.

 

The trade-in of used cars when purchasing new ones is a key source of used vehicles, which are in demand in Singapore due to high Certificate of Entitlement (COE) prices.

 

A new joint venture will also be established as part of the partnership, to create a &ldquo multi-brand after-market workshop business&rdquo in Singapore and Malaysia. This will operate as a third-party workshop business, and will likely also support consumers who purchase used cars from Jardine C& C or Carro.

 

Jardine C& C is the investment holding company of the Jardine Matheson Group in South-east Asia. It owns multiple automotive dealerships in the region through its direct motor interests group. It also owns a 50.1 per cent stake in Astra, an Indonesian group with significant automotive interests.

 

Carro was established in 2015. It said it is now South-east Asia&rsquo s largest online used-car marketplace, using algorithms and artificial intelligence-enabled tech as part of its platform. Sime Darby invested S$5 million in the home-grown startup in 2021.