Jardine Cycle & Carriage

[viruskbs]

There is another Listing in the SGX by the Jardine Group, Jardine C&C ( C07.si)
any views on that vis a vis JSH & JMH

[cyclone]

Possibly you meant one of Jardines member, Jardine Cycle & Carriage.

Since there is no thread on Jardine C&C, I split your post and created a new thread on Jardine C&C.

A blue chip with undemanding valuation :
Today's closing price : SGD 36.5
P/B about 2
P/E around 11
ROE for the past 5 years around 20% per annum.
Increasing dividends for the last 10 years.
Dividend yield around 4.2 per cent.

Jardine C&C holds 50.1% of Astra. It is also a majority shareholder of Tunas Ridean Tbk, has around 60% of Cycle & Carriage Bintang which is listed on Bursa. 100% of Cycle & Carriage in Singapore. Around 30% of Truong Hai Auto Corporation in Vietnam.

Most of it's revenue, around 90% ? of revenue is derived from Astra, an Indonesian conglomerate which is listed on Indonesia Stock Exchange.
Probably a cheaper way to be vested in Astra.

Parent Jardine Strategic holds about 73% of Jardine C&C.

Correct me if I'm wrong.

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[viruskbs]

thanks for correcting me, I dunno what i was thinking when i was typing Jardine as Jason... :p

Have corrected it now

Anyways thanks for the info.

[zerobeta]

as Cyclone as put it, this company has very good fundamentals... wondering why its coverage is very small?

94% of its underlying profit is from Astra, its stake on Astra forms around 97% of its market cap.

poor results in 2013 mainly due to earning translation from IDR to USD (Astra reported in IDR, JCC in USD).
Underlying profit at Astra in IDR term was flat in 2013. It was actually a good performance considering 2013 was a very challenging year amidst weak commodity price (coal and CPO) (Astra has 25% exposure into commodity). So with commodity rebounding, there is a good chance for a turnaround.

Question is, if it's better to invest into Astra directly since Astra doesn't have exposure into Singapore and Malaysia unlike JCC. Singapore and Malaysia auto sector are not good in the long term due to government measures to curb private vehicles (for Singapore) and stiff competition especially against government brand Proton (for Malaysia). There's also no headache from currency translation if we invest into Astra directly.

Thoughts?

[psslo]

I believe it may cheaper if you buy Jardine C&C vs Astra directly. Just compare the market cap for a quick estimate.

as Cyclone as put it, this company has very good fundamentals... wondering why its coverage is very small?

94% of its underlying profit is from Astra, its stake on Astra forms around 97% of its market cap.

poor results in 2013 mainly due to earning translation from IDR to USD (Astra reported in IDR, JCC in USD).
Underlying profit at Astra in IDR term was flat in 2013. It was actually a good performance considering 2013 was a very challenging year amidst weak commodity price (coal and CPO) (Astra has 25% exposure into commodity). So with commodity rebounding, there is a good chance for a turnaround.

Question is, if it's better to invest into Astra directly since Astra doesn't have exposure into Singapore and Malaysia unlike JCC. Singapore and Malaysia auto sector are not good in the long term due to government measures to curb private vehicles (for Singapore) and stiff competition especially against government brand Proton (for Malaysia). There's also no headache from currency translation if we invest into Astra directly.

Thoughts?

[zerobeta]

I believe it may cheaper if you buy Jardine C&C vs Astra directly. Just compare the market cap for a quick estimate.

as Cyclone as put it, this company has very good fundamentals... wondering why its coverage is very small?

94% of its underlying profit is from Astra, its stake on Astra forms around 97% of its market cap.

poor results in 2013 mainly due to earning translation from IDR to USD (Astra reported in IDR, JCC in USD).
Underlying profit at Astra in IDR term was flat in 2013. It was actually a good performance considering 2013 was a very challenging year amidst weak commodity price (coal and CPO) (Astra has 25% exposure into commodity). So with commodity rebounding, there is a good chance for a turnaround.

Question is, if it's better to invest into Astra directly since Astra doesn't have exposure into Singapore and Malaysia unlike JCC. Singapore and Malaysia auto sector are not good in the long term due to government measures to curb private vehicles (for Singapore) and stiff competition especially against government brand Proton (for Malaysia). There's also no headache from currency translation if we invest into Astra directly.

Thoughts?

how it is cheaper, could you please elaborate? thanks

[vingaard]

Question is, if it's better to invest into Astra directly since Astra doesn't have exposure into Singapore and Malaysia unlike JCC. Singapore and Malaysia auto sector are not good in the long term due to government measures to curb private vehicles (for Singapore) and stiff competition especially against government brand Proton (for Malaysia). There's also no headache from currency translation if we invest into Astra directly.

Thoughts?

Cycle & Carriage facing competition from Proton? That's not even a remote possibility. They are on the opposite spectrum of the car market.

[orangetea]

Hk was reported to be congested by Mercedes.
As for sg, people's adjustment to higher car price would normalise eventually.

We are afterall a rich nation.

Poor us.

[CY09]

Hk was reported to be congested by Mercedes.
As for sg, people's adjustment to higher car price would normalise eventually.

We are afterall a rich nation.

Poor us.

Here something interesting abt HK,

HK is congested with Lexus, Mercedes and other rich cars and vans of course. The normal brand cars like hyundai and toyota have a minimal presence.

In fact sg is going this direction of HK past 5 years. Despite the growth of our car population, the no of toyota cars sold here have remained the same, Honda and Hyundai are diminishing, but Audi, BMW and Mercedes car sales have increased over the 5 years.

[corydorus]

Hk was reported to be congested by Mercedes.
As for sg, people's adjustment to higher car price would normalise eventually.

We are afterall a rich nation.

Poor us.

Here something interesting abt HK,

HK is congested with Lexus, Mercedes and other rich cars and vans of course. The normal brand cars like hyundai and toyota have a minimal presence.

In fact sg is going this direction of HK past 5 years. Despite the growth of our car population, the no of toyota cars sold here have remained the same, Honda and Hyundai are diminishing, but Audi, BMW and Mercedes car sales have increased over the 5 years.

Not surprising trend. The richer prevail in auction type of COE bidding.