Initiate at Buy: more than a holding company; NAV risk from FX overstated

Research evidence excerpt

Initiate at Buy: more than a holding company; NAV risk from FX overstated

iQprofile SM Jardine Matheson

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(US$ Millions) Industrials/Multi-Industry

Sales 35,779 33,817 32,443 33,655 35,147

Gross Profit NA NA NA NA NA

Sell General & Admin Expense NA NA NA NA NA Company Description Operating Profit 3,814 3,716 3,395 3,756 3,931

Net Interest & Other Income (527) (448) (403) (452) (451) Jardine Matheson is a diversified, Asia-focused investment

Associates 1,125 1,094 796 859 905 group founded in 1832. It builds and manages market-

Pretax Income 4,412 4,362 3,788 4,163 4,386 leading businesses across sectors including property, retail,

Tax (expense) / Benefit (857) (797) (707) (772) (801) automotive, and hospitality. With a long-term investment

Net Income (Adjusted) 1,471 1,681 1,568 1,895 2,030

approach, the group aims to deliver sustainable growth

Average Fully Diluted Shares Outstanding 290 294 296 296 296

through strong governance, strategic portfolio

Key Cash Flow Statement Data

management, and deep regional expertise.

Net Income 2,532 1,383 1,568 1,895 2,030

Depreciation & Amortization 2,174 2,192 2,553 2,579 2,517

Change in Working Capital (828) (528) (408) (854) (871)

Deferred Taxation Charge NA NA NA NA NA Investment Rationale

Other Adjustments, Net 1,121 2,262 1,992 2,065 2,059 We rate Jardine Matheson a Buy. We expect its expansion

Cash Flow from Operations 4,999 5,309 5,705 5,686 5,735 into faster-growing verticals and rising non-listed

Capital Expenditure (2,033) (2,162) (1,529) (1,563) (1,553) contributions to narrow its holding company discount and

(Acquisition) / Disposal of Investments 136 1,018 (2,195) (339) (339)

its continued non-core disposals to unlock value and fund