Jardine Matheson: Keeping on the rails

Research evidence excerpt

Jardine Matheson: Keeping on the rails

J P M O R G A N Asia Pacific Equity Research

03 August 2026

Jardine Matheson Overweight

JARD.SI, JM SP

Keeping on the rails Price (31 Jul 26):$66.41

Price Target (Jun-27):$94.00

Year to date, the stock has dropped 2% (STI: +21%) mostly due to concerns on Mainland China/Hong Kong Property

Indonesia. However, Astra has proven to be less of a drag than expected, and JM & Conglomerates

already has plans to gradually reduce reliance on Indonesia (more in Revealing the Karl Chan AC

2030 playbook). We also believe the market may have overlooked JM’s upcoming (852) 2800-8513

efforts on portfolio simplification, as seen by the distribution in specie of Toyota karl.chan@jpmorgan.com

shares at JC&C level. We believe JM remains on the right track, with its (1) 5% Venus Choi

earnings CAGR that we forecast from FY25 to FY28; (2) promise to deliver >5% (852) 2800-8599

DPS growth till 2030; (3) proactive capital recycling; (4) likely more efforts in venus.choi@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

portfolio simplification which reduces the holding company discount. Stay Morgan Broking (Hong Kong) Limited

Overweight.

• Astra is not as bad as feared: The key pushback on the stock has been Astra Key Changes (FYE Dec)

(40-50% of earnings contribution). However, Astra’s 1H26 results turned out Prev Cur Δ

to be better than feared, with resiliency in its auto (+19% Y/Y in 2Q NPATMI) Adj. net income - 26E ($ mn) 1,641 1,646 0.3%

Adj. net income - 27E ($ mn) 1,696 1,726 1.8%

& financing businesses (+7%). While UT was weak, it was highly anticipated,

and with operations in Martabe normalizing, we expect improvement in 2H26 Style Exposure

(more in the report on Astra by Benny Kurniawan & the report on UT by

Arnanto Januri).