Jardine Matheson - CGS-CIMB Research 2019-12-09: Hong Kong Woes

JARDINE MATHESON HLDGS LTD (SGX:J36) | SGinvestors.io JARDINE MATHESON HLDGS LTD (SGX:J36)

Jardine Matheson - Hong Kong Woes

  • JARDINE MATHESON (SGX:J36) offers exposure to the growing economies of ASEAN and Greater China.
  • In our view, 2H19F outlook for Jardine Matheson could be challenging due to the uncertainty in Hong Kong (HK) and poor consumer sentiment in the Asian region.
  • Maintain ADD, with a lower Target Price of US$61.66 to reflect the Target Price cut of subsidiary Dairy Farm International, and the lower share prices of Jardine Matheson’s investments.



Diversified conglomerate



Hongkong Land (SGX:H78, Rating: ADD, Target Price: US$6.90)



Dairy Farm International (SGX:D01, Rating: REDUCE, Target Price: US$5.40)



Jardine Cycle & Carriage (SGX:C07, Unrated)



Maintain ADD

  • We value Jardine Matheson at 0.78x P/BV (0.5 s.d. below its historical 20-year average P/BV).
  • We trim our FY19-21F EPS by 0.5-1.8% to reflect changes to our forecasts for Dairy Farm International. Our Target Price declined to US$61.66 to reflect the Dairy Farm International's recent Target Price reduction and the latest share prices of Jardine Matheson’s investments.
  • Potential re-rating catalysts for the stock are return to normalcy in HK.
  • Downside risks to our call are deterioration of the situation in HK.





William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2019-12-09
SGX Stock Analyst Report ADD MAINTAIN ADD 61.66 SAME 64.86



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