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

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

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Jardine Matheson

Initiate at Buy: more than a holding

company; NAV risk from FX overstated

Initiating Coverage: BUY | PO: 74.00 USD | Price: 63.25 USD

New Buy (PO: US$74); NAV exposure to IDR overstated 15 June 2026

We initiate Jardine Matheson (JM) at Buy with PO of US$74, based on a 28% target Equity

discount to our 2026E NAV of US$102 (1SD tighter than the historical average to reflect

stronger focus on shareholder returns). We expect 1) expansion into faster-growing Karl Choi, CFA >> Research Analyst

verticals and rising non-listed contributions to narrow the Holdco discount; 2) continued Merrill Lynch (Hong Kong)

non-core disposals (esp. at Holdco level) to unlock value and fund reinvestment; and 3) +852karl.choi@bofa.com3508 3108

earnings growth to accelerate from FY27 as new initiatives scale. JM shares have been Fan Tso, CFA >>

hurt by IDR weakness, but Astra now represents only 18% of NAV. Strong balance sheets Research Analyst

Merrill Lynch (Hong Kong)

at JM/Astra, alongside JM’s progressive dividend policy and Astra’s buyback (which +852 3508 2875

boosts JM’s profit share), should help offset FX-related earnings pressure. fan.tso@bofa.com

Jessie Lo >>

Investor Day on June 16 = catalysts + more buybacks ResearchMerrill LynchAnalyst(Singapore)

JM will host an Investor Day on June 16, where we expect mgmt to outline its 5-year TSR +65 6678 1134

jessie.lo@bofa.com

targets (BofAe: 7–9%), capital allocation goals (BofAe: 4% annual DPS growth, 60% of

subsidiary dividend returned via dividends and buybacks), and investment criteria aimed

at a more diversified long-term geographic/business mix (away from Indonesia/HK).