First Read Jardine Matheson: New 5-year financial targets; Positive

Research evidence excerpt

First Read Jardine Matheson: New 5-year financial targets; Positive

Forecast returns

Forecast price appreciation 38.5%

Forecast dividend yield 3.8%

Forecast stock return 42.3%

Market return assumption 7.1%

Forecast excess return 35.2%

Company Description

Jardine Matheson (JM) is an investment holding company with a diversified portfolio of

industry-leading assets in automobile distribution, property investment and development,

engineering and construction, and retail, primarily in mainland China, Hong Kong and

Southeast Asia. JM has exposure to the property market via Hongkong Land (listed), Asian

retailing via Dairy Farm International (listed), hospitality via Mandarin Oriental (listed) and in

motor distribution and property in South East Asia via Jardine Cycle & Carriage (listed), which

owns 50% of Astra International (listed).

Valuation Method and Risk Statement

We value Jardine Matheson based on our SOTP-derived NAV and apply a discount based on

its stub value discount of 10%.

We believe the key upside risks to our price target for Jardine Matheson include: 1) favourable

currency movements against the US dollar, the reporting currencies of Astra International,

Zhongsheng and THACO; 2) improving economic landscape in emerging markets for

properties, auto distribution and retail industries; and 3) larger-than-expected rates to drive a

higher asset value due to lower cap rates for investment properties. Key downside risks

include: 1) unfavourable currency movements against the US dollar, the reporting currencies

of Astra International, Zhongsheng and THACO; 2) competitive pressure in the properties,

auto distribution and retail industries; and 3) lower asset value due to higher cap rates for

investment properties.

First Read: Jardine Matheson 16 June 2026 ab 2