Jardines MathesonSEA: NAV premium hard to ignore

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Jardines MathesonSEA

NAV premium hard to ignore

Reiterate Rating: UNDERPERFORM | PO: 26.00 SGD | Price: 29.40 SGD

Astra remains the key earnings swing

31 July 2026

Jardine Matheson Southeast Asia (JMSEA, renamed from Jardine Cycle & Carriage)

reported 1H26 revenue / net profit at US$10bn / 363mn, down 8% / 2% YoY

respectively. Underlying profit was down 11% YoY due to 1) lower contribution from

mining solutions and heavy equipment sales under Astra – exacerbated by a weak IDR, 2)

lower contribution from Cycle & Carriage in Singapore, 3) reduced stake and dividend

income from Vinamilk. These earnings drags were partially offset by profit

improvements in Vietnam, particularly THAssCO which benefited from strong Sala City

real estate project sales and agriculture segment’s breakeven.

Equity

Announced special dividend US¢73/share

Besides the interim cash dividend of US¢28/share (unchanged from 2025), JMSEA

proposed special dividend of US¢73/share, comprising a cash distribution of US¢37 and

a distribution-in-specie of remaining shares in Toyota Motor Corporation (TMC) valued

at US¢36/share, bringing total 1H distribution at US¢101/share. In 1H26, JCNC also

recycled capital of US$334mn through partial divestment on Vinamilk and TMC, reducing

corporate net debt US$577m to US$286m.

Further divestments to come?

Management reiterated that portfolio optimization remains an ongoing priority following

its strategic review, with a continued focus on improving capital allocation and

shareholder returns. While market speculation has centered on a potential divestment of

Cycle & Carriage franchise (car dealerships in Singapore & Malaysia), management

declined to comment on specific assets under review. We incorporate the latest cuts to

Astra’s estimates and reiterate our Underperform rating, as JMSEA continue to trade at

a 16% premium versus underlying net asset value (NAV), based on our estimates, vs 20%

historical average discount.

Estimates (Dec) (US$)

Net Income (Adjusted - mn)

EPS

EPS Change (YoY)

Dividend / Share

Free Cash Flow / Share

Valuation (Dec)

P/E

Dividend Yield

EV / EBITDA*

Free Cash Flow Yield*

2024A

946

2.39

-22.2%

1.12

5.07

9.01x

5.20%

…