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5 Things You Should Know About Jardine Cycle & Carriage

Jardine_Cycle_&_Carriage_LogoIf you’ve ever bought a new car in Singapore (or Malaysia and particularly Indonesia) you may know of the investment holding company Jardine Cycle and Carriage (JC&C) (SGX: C07).

Part of the vast and complicated Jardine Group (which includes Jardine Strategic Holdings (SGX: J37), Jardine Matheson Holdings (SGX: J36)) JC&C engages in the retail, distribution, and provision of after-sales service for Mercedes-Benz, Mitsubishi, Kia and Citroen vehicles in Singapore. It also manufactures and distributes automotive equipment.

Like most companies in the Jardine Group, JC&C is part owned by one of its siblings – in this case Jardine Strategic Holdings (SGX: J37), which holds 72%. Today, the company employs 201,000 people across Singapore, Malaysia, Indonesia and Vietnam.

But did you know…

  1. Jardine Cycle & Carriage began life in Kuala Lumpur way back in 1899. Known as Federal Stores, the company traded in everything from nutmegs and soap, to writing paper and simple machine parts. In 1926, the company changed its name to Cycle & Carriage and moved to Singapore, before being taken over by Jardine’s in 2002.
  2. JC&C owns 50.1% of Astra International, Indonesia’s largest car manufacturer.
  3. The company also has a 20% stake in Tata Industries, an unlisted Indian investment company that has its primary investment in Tata Teleservices, a mobile phone service provider in the Indian Telecom sector.
  4. JC&C is also an Indonesian coal mining service contractor, holding interests in nine coalmines with combined reserves of 424m tonnes.
  5. Cycle & Carriage Bintang (part of the JC&C Group) is the largest dealer of Mercedes-Benz vehicles in Malaysia.

As you can see, Jardine Cycle & Carriage has its fingers in many pies – in addition to the above, it owns 273 hectares of palm oil plantations in Indonesia, and is involved in the cultivating, harvesting and processing the crude palm oil.

It also distributes Fuji Xerox copier machines in Indonesia, offering document and IT services to boot and even provides financial services and insurance.

The company has seen some good times with healthy sales and earnings increases resulting in its share price rising by a whopping 870% since 2003, to S$45.56 today, paying dividends of S$1.51 per share, giving them a dividend yield of 3.3%.

Its overseas ventures provides investors with some geographical diversification, and looking forward, JC&C has recently been appointed as Daimier AG’s official partner to distribute Mercedes-Benz vehicles and Fuso trucks in Myanmar.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Alison Hunt doesn’t own shares in any companies mentioned.