Lifetime Membership Special Offer! And then, there are left with four of them. With the delisting of Jardine Strategic from SGX in April 2021, the four affiliated members of the Jardine Matheson group remains in Straits Times Index (STI) – HongKong Land, Dairy Farm, Jardine Matheson Holdings and Jardine C&C. These four “Hong Kong Heavenly Kings” had dominated STI for years and are all part of the Jardine Matheson Group. Recently, a Lifetime Member has requested me to do a research on Jardine C&C share price, which I will gladly do so in this article.
Previously, I had written an article on HongKong Land. For many Singaporeans, Cycle and Carriage needs no introduction. The company is the authorized dealer for automotive brands like Mercedes-Benz, Mitsubishi, Kia and etc. Their business includes automotive distribution, retail and aftermarket services, spanning across Singapore, Malaysia, Myanmar. Cycle and Carriage is one of the Direct Motor businesses under Jardine C&C portfolio. However, in analysing Jardine C&C share price, it is important to note the other key businesses of the Group. Take note that Direct Motor contributed to just 30% of Jardine C&C’s underlying profits in 2020.
Although Jardine C&C is listed in SGX and has presence in Singapore through its automotive business, analysing Jardine C&C share price is not so straightforward. This is because the Group has a sprawling and diversified businesses in Southeast Asia. In this regard, it will not make sense for investors to analyse the stock based solely on its automotive business in Singapore as the bulk of its earnings are derived from its businesses in eight sectors and six countries in Southeast Asia.
For the uninitiated, Jardine C&C has a 50.1% interest in Astra, a diversified group in Indonesia, which is also the largest independent automotive group in Southeast Asia. Jardine C&C also has significant interests in Vietnam, including 26.6% in Truong Hai Auto Corporation, 29.8% in Refrigeration Electrical Engineering Corporation and 10.6% in Vinamilk. Its 25.5%-owned Siam City Cement also has a presence in South Vietnam, in addition to operating in Thailand, Sri Lanka, Cambodia and Bangladesh.
In my previous article. I have covered automotive related company, Vicom. Unlike Vicom, Jardine C&C breaks down the revenue sources in terms of business segments. This allows me to have a clear picture of the risk and reward in relation to Jardine C&C share price. Nonetheless, investors should pay attention to the non-controlling interests in the Jardine C&C financial results because they are material to the Group.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Jardine C&C before. Whether Jardine C&C share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions
Jardine C&C share price riding the storm
Jardine C&C share price used to trade at a high of $47 in 2017, which was the year in which net income hit a high of $938 million. Following then, the counter peaked and went on a bearish run. The onset of pandemic saw Jardine C&C share price plummeted to a low of $18.30 in April 2020.
While the stock has somewhat recovered to the $20 bandwidth, it is still a far cry from the pre-pandemic levels. However, my chief concern on Jardine C&C share price is not its valuation. Instead, my biggest concern is the [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]Lifetime Membership Special Offer!
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