Jardine Matheson (JARD.SI): Maintain Buy: Stable Earnings Momentum and Slightly Raised FY26E Dividend Guidance

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31 Jul 2026 09:48:46 ET │ 17 pages

Jardine Matheson (JARD.SI)

Maintain Buy: Stable Earnings Momentum and Slightly Raised FY26E

Dividend Guidance

CITI'S TAKE

Key takeaways from analyst briefing: (1) Management maintained its profit

guidance (in line with 2025 on adjusted basis), but increased its FY26E DPS

guidance from "at least US$2.45" to "at least US$2.47" (+5% YoY). (2)

Management reiterated that JC&C is an intermediate holding company, with

principal purpose of managing and cultivating Astra and investments in

Vietnam (which is why it does not have its own TSR target). It is therefore

extremely unlikely that JC&C will be involved in any new investments. On the

other hand, management will continue to look for opportunities for capital

recycling and simplification. We maintain our Buy rating on JM shares and

raise our target price from US$76.50 to US$80 (reflecting the higher market

value of its listed subsidiaries), still applying an 18% target discount (the

stock is trading at ~31% NAV discount).

1H26 Results Inline — JM’s 1H26 adjusted underlying profit rose 9% YoY to

US$735m (adjusted for disposals and accounting change re: Zhongsheng),

representing ~47% of our prior FY26E forecast of US$1,555m. The YoY increase was

primarily driven by the higher contributions from Jardine Pacific (+16% YoY excl. oneoff gain), Hongkong Land (+14% YoY), DFI Retail (+11% YoY), and lower financing

costs. This was partially offset by the lower contributions from Astra (-8% YoY) and

JC&C (-8% YoY). The Board declared interim DPS of US$0.65 (+8% YoY). Gearing

increased by 2 ppts to 7% at end-1H26 vs. 5% at end-FY25.

n

Buy

Price (31 Jul 26 17:06)

US$66.41

Target price

US$80.00↑

from US$76.50

Expected share price return

20.5%

Expected dividend yield

3.7%

Expected total return

24.2%

Market Cap

US$19,523M

Price Performance

(RIC: JARD.SI, BB: JM SP)

Other Key Takeaways from Analyst Briefing — In 1H26, JM recycled US$1.5bn of

capital, invested US$1.7bn, and achieved a five-year TSR of 4.4% p.a. (1H25: 7.5%).

JM highlighted its 2030 commitments, including five-year TSR of at least 9% p.a.,

at least 5% p.a. dividend growth to 2030, capital recycling of at least US$4bn, and

…