Jardine Cycle & Carriage Ltd (JCYC.SI): Maintain Sell on Valuation Despite US$0.73 Special DPS

Research evidence excerpt

Jardine Cycle & Carriage Ltd (JCYC.SI): Maintain Sell on Valuation Despite US$0.73 Special DPS

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31 Jul 2026 08:26:35 ET │ 17 pages

Jardine Cycle & Carriage Ltd (JCYC.SI)

Maintain Sell on Valuation Despite US$0.73 Special DPS

CITI'S TAKE

In our view, JCNC’s proposed name change to “Jardine Matheson Southeast

Asia Limited” is consistent with management’s focus on its Indonesian and

Vietnamese portfolio companies, as management remains confident in the Sell

company’s long-term prospects. JCNC further reduced its corporate net Short-Term View: Upside, expires 30-AUG-26

debt from US$577m by end-FY25 to US$286m by end-1H26 thanks to its

Price (31 Jul 26 17:06) S$29.40capital recycling efforts. Management intends to further divest its

shareholding in Vinamilk when the timing and price are appropriate. Target price S$25.50↑

Reflecting the latest operating trends, FX rates, 1H26 underlying profit beat from S$24.70and our greater expectations of THACO’s growth, we raise JCNC’s FY26E-

28E underlying profit forecasts by 5-8%. We derive our new TP of S$25.5 Expected share price return -13.3%

(previously S$24.7) by first applying our 5% target discount (still 1 S.D. above Expected dividend yield 7.3%

historical mean) to our end-27E SOTP-based NAV and then adding the Expected total return -6.0%proposed special dividend of US$0.73/share. Maintain Sell on valuation.

Market Cap S$11,620M

1H26 Results Beat — JCNC reported 1H26 underlying profit of US$473m (-11% YoY), US$9,071M

tracking ~54% vs. our previous FY26E forecast of US$874m. The YoY lower

underlying profit was mainly due to 9% YoY lower profit contribution from Astra and

the absence of exchange gains from translation of its SGD loans (nil in 1H26 vs.

US$33m in 1H25).