Jardine Matheson Holdings Limited

[CityFarmer]

http://businesstimes.com.sg/stocks/jardi...ing-starts

Jardine Matheson tops trading by value as smaller board lots trading starts
By Cai Haoxiang haoxiang@sph.com.sg @HaoxiangCaiBT
19 Jan 10:25 AM
AN hour into trading on Monday morning, secondary-listed Jardine Matheson Holdings is Singapore Exchange's (SGX) top traded stock by value.

By 10am, 197,000 shares were traded with a total traded value of US$12.6 million. The counter rose 50 US cents to US$63....

The small board lots initiative works. Retail investors are able to buy the company in lots of ~US$6,300, rather a much bigger sum previously.

[cyclone]

Goldman, Morgan Stanley Ask to Cancel Trades After $41 Billion Flash Crash

By Sofia Horta e Costa , Bei Hu , Cathy Chan , and Livia Yap
January 25, 2019, 2:27 PM GMT+7 Updated on January 25, 2019, 4:39 PM GMT+7

* Jardine Matheson briefly lost $41 Billion of market value
* Those who sold lost $9 million in minutes, calculations show

Goldman Sachs Group Inc. and Morgan Stanley asked some counterparties to cancel or amend trades in Jardine Matheson Holdings Ltd., after a $41 billion flash crash on Thursday saw shares change hands far below the market level, according to people familiar with the matter.

Some of the amendment requests were to settle the trades at a higher price, according to the people, who asked not to be named discussing a sensitive topic. It wasn’t clear whether the at-market sell orders from Goldman and Morgan Stanley triggered the brief plunge or whether other factors in the pre-open auction were at play, some of the people said. Spokesmen for Goldman and Morgan Stanley declined to comment.

Speculation has been swirling in Singapore about Jardine Matheson’s dramatic start to the Thursday session, when some 167,500 shares changed hands at $10.99, compared with the previous day’s close of $66.47, then bounced back within minutes. That implies a loss of about $9 million for those who sold at the pre-market level, and an instant windfall on the other side of the trade, according to Bloomberg calculations.

Three market makers had their sell orders matched at the day’s low, a separate person said, also asking not to be named as the details are private. More than a dozen counterparties snapped up the cheaper shares, according to that person. The plunge briefly wiped out $41 billion in market value.

Singapore Exchange Ltd. decided not to cancel the trades. Sellers had "ample time" to withdraw their orders if they didn’t want to offload shares at the low price, SGX said after reviewing the incident. The exchange attributed the decline to sell orders that overwhelmed bids during the pre-open, for which neither a fat finger nor a malfunctioning computer system were responsible.

More details in https://www.bloomberg.com/news/articles/...emium-asia

[dreamybear]

Complex cross-shareholding of JM, JS, JC&C being affected by the market volatility.

-----------------------------------------------
Jardine Strategic down 14% in biggest single-day drop (Thu, Mar 19, 2020 - 4:00 PM)
https://www.businesstimes.com.sg/compani...e-day-drop

"...with the recent spike in market volatility, the usual relationship between two stocks seems to have collapsed to levels never seen before...Over the longer term, Mr Blennerhassett believes that it would make more sense for JS to trade at a 40 per cent discount to its adjusted net asset value (NAV), instead of a 55 per cent discount now...."

[¯|_(ツ)_/¯]

27 Apr 2020 C&C published a interim management statement for 1Q20.

I should had see it coming...
28 Apr 2020 all the Jardine company published their interim management statement too

Here it is:
JMH
JSH
JCC
HK Land
Dairy Farm

[¯|_(ツ)_/¯]

11 May 2020 Jardine script dividend start trading on 14th May 2020

(JMH)
(JSH)

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

JMH 1H Result ended 30 June 2020
Rev USD15b (vs $20b)
Operating loss USD894m (vs $3.3b)
Loss after tax USD1.3b (vs $3.2b)
Interium USD44 cents dividend (vs 44cents) 
https://links.sgx.com/FileOpen/JMH.ashx?...eID=625723

Wear mask and keep your social distance, everyone

[weijian]

This probably explains the recent drop in prices (ie. "indiscriminate" selling from an institutional gorilla) for these entities related to the Kewicks.

Norway wealth fund sells stakes in 3 Jardine firms on environment concerns

NORWAY’S US$1.6 trillion sovereign wealth fund has excluded three companies from its portfolio due to concerns that mining activity may destroy the natural habitat of critically endangered orangutans, the fund said in a statement.

Norges Bank Investment Management, which operates the Norwegian sovereign wealth fund, at the end of 2023 held shares in Jardine Matheson Holdings worth US$94.2 million, according to the fund’s latest disclosure. Its stake in Jardine Cycle & Carriage was worth US$13.5 million at the same time, while it held shares of US$15.0 million in Astra.

https://www.businesstimes.com.sg/esg/nor...t-concerns

[weijian]

The past 1-1.5years hasn't been good for the Jardines and minorities, as its holding company JMH and listing subsidiaries' share prices retreating back to covid-19 lows. This is despite improving and record earnings - implying a P/E compression that is indicative of Mr Market believing that it has surpassed its cyclical peak.

- Greater China and Vietnam hasn't been good, with Jardine projecting more challenging conditions ahead for the former. And as the former gets more challenging, Indonesia (Astra) is not spared.

- Some of its businesses like Health/Beauty (Guardian/Mannings) and Luxury Hospitality (Mandarin Oriental) are seeing an uplift across geographies, after recovering from previous lows. It remains to be seen if cycle will suddenly turn against them.

- Keswicks working on the "G" on the ESG - as long time buddies/ex Jardine staff are progressively replaced (Audit Committee) by new NED IDs. In addition, LESS management associate "Jack of All Trade" talents, MORE external "Specialist" talent from outside.

- Acquiring ~2% of JCC (stake increases from 76% to ~78%) over the past 1-1.5years. Even more on share buyback. Deleveraging continues as it diversify stakes at holding company and its subsidiaries.

Jardine Matheson Holdings Limited 2023 Preliminary Announcement of Results

• Underlying profit up 5% to US$1.66 billion (+7% at CER°)
• Record performance in South East Asia, driven by Astra
• Strong recoveries at DFI Retail and Mandarin Oriental
• Significant capital investments at Astra to drive future growth
• Full year dividend up 5% to US$2.25

JMH FY23:
https://links.sgx.com/1.0.0/corporate-an...3cd9d39ba8

[weijian]

JMH has 4 listed entities (either primary or secondary listed) on the SGX. It would be interesting to see the stake differences over the last decade:

2014 (Jardine Strategic)
HKL~50%
JCC~74%
DFI~78%
MOI~73%

2024 YTD (post merged JMH)
HKL~53.3%
JCC~81%
DFI~77.5%
MOI~85%

There seems to be 3 categories:

(1) No change in stake for DFI. The business has slowly lost its halo effect over the last decade. Transformation started in 2017 and maybe they could be close to a change in fortunes?

(2) HKL's stake has been increased from 50% to 53.3%. JMH's ownership share count remains the same, meaning that this 3.3% stake increase is coming from its share buy back (SBB). As HKL's discount to NAV increases, why wouldn't the Taipans increase its stake via direct market purchases?

(3) JCC and MOI have witnessed their stakes increasing >80% over the last decade, due to a combination of 2015 rights and subsequent direct market purchases. Most of this increase came from direct market purchases which happened in the last 1.5years. It is interesting to note these came after the Jardines paid up to dissolve their crossed structure. While they continue to diversify non-core (eg. JLT) to pay down debt and "double down" on HK/SEA, are these stake increases indicative of its capital allocation strategy moving forward?

Jardines seemed to have evolved a little bit from Asset Hoarders to Asset Allocators. What does their asset allocation suggest? What was their track record, or does it even matters?

[ghchua]

Hi weijian,

By just looking at the stake changes in those listed entities doesn't tell you the whole story on their capital allocation decision making. Granted that they might not have increased their stake in DFI Retail and HKL, but their capital invested in these two entities had been higher than JCC and MOI. MOI is having the lowest market cap as compared to the 3 other STI stocks, so increasing MOI is most logical since there are lesser capital invested into it. JCC comes next, as they have the second lowest capital invested by JMH among the 4 listed entities.

Frankly speaking, I would not look into these many details, other than the big picture. Which is, JMH is allocating capital to strategic growth initiatives, while divesting non strategic and low yielding assets. All these being done while simplifying the group's portfolio.