Jardine Matheson - CGS-CIMB Research 2020-03-09: FY19 In Line With Expectations

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

Jardine Matheson - FY19 In Line With Expectations

  • Jardine Matheson's FY19 underlying net profit formed 97% of our forecast, within expectations.
  • The group expects the short-term outlook to be challenging given the Covid-19 outbreak.
  • We downgrade our rating from Add to HOLD.



FY19 in line with expectations

  • Jardine Matheson (SGX:J36)'s FY19 underlying net profit of US$1.5bn was in line with our expectations, at 97% of our forecast. A final DPS of US$1.28 was declared.
  • In FY19, Jardine Matheson’s balance sheet was strengthened by a cash inflow of US$2.1bn arising from the sale of its stake in Jardine Lloyd Thompson.


PT Astra International (29% of FY19 underlying net profit)

  • Key drivers behind Astra’s performance were
    1. lower car sales and higher operating costs;
    2. reduction in non-performing loans; and
    3. contribution from a new gold mining operation.


Dairy Farm Int’l Hldgs (29% of FY19 underlying net profit)



Hongkong Land Hldgs (13% of FY19 underlying net profit)



FY20F outlook

  • Jardine Matheson (SGX:J36) expects the short-term outlook to be challenging and its performance in FY20F will depend on the duration, geographic extent and impact of the Covid-19 outbreak and the measures taken to control the outbreak. The group is optimistic about the prospects for a speedy recovery once the situation stabilises.


Downgrade from Add to Hold






William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2020-03-09
SGX Stock Analyst Report HOLD DOWNGRADE ADD 52.53 DOWN 61.660



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......