An Investor’s Fact-Sheet For Jardine Cycle & Carriage Ltd

Jardine Cycle & Carriage Ltd (SGX: C07) is one of the companies that are under the sprawling web of the Jardine business empire.

Some of the other Singapore-listed companies in that group include Jardine Strategic Holdings Limited (SGX: J37), Hongkong Land Holdings Limited (SGX: H78), Dairy Farm International Holdings Ltd (SGX: D01), Mandarin Oriental Limited (SGX: M04), and Jardine Matheson Holdings Limited (SGX: J336).

In some of those companies, there are cases of complicated cross-holdings and this might thus create confusion among investors.

To help clear up some of the possible fog, I thought it would be useful and interesting to prepare a fact-sheet so that investors can better understand Jardine Cycle & Carriage. Here goes!

1. The business of Jardine Cycle & Carriage

The company’s business can be thought of as having three components.

First, Jardine Cycle & Carriage owns just over 50% of an Indonesia-based conglomerate called Astra International. Astra, which is also listed on Indonesia’s stock market, owns businesses in various industries such as financial services, automotive, heavy equipment and mining, agribusiness, infrastructure and logistics, and information technology.

Second, Jardine Cycle & Carriage has its own vehicle distribution businesses under the Cycle and Carriage banner in Singapore, Malaysia, and Myanmar, Tunas Ridean in Indonesia, and Truong Hai Auto Corporation in Vietnam. These vehicle distributors sell cars from different manufacturers in their respective regions.

For example, Truong Hai is one of the largest automotive companies in Vietnam and represents brands such as Kia, Mazda, Peugeot, Foton and Hyundai whereas Cycle and Carriage retails car brands such as Mercedes-Benz, Mitsubishi, Kia, and Citroën.

Third, Jardine Cycle & Carriage owns roughly a quarter of Thailand-listed cement producer Siam City Cement and over a fifth of Vietnam-listed mechanical and electrical engineering services provider Refrigeration Electrical Engineering Corporation.

2. Historical financial performance

Any fact-sheet of a company will feel incomplete if there are no financial numbers given. Here’s a table with some key numbers over the past five years:

Jardine Cycle & Carriage revenue and income table
Source: S&P Global Market Intelligence

3. Stock market returns

Over the five years ended 26 July 2016, Jardine Cycle & Carriage’s stock price has declined by a total of 27%. If the gains from reinvested dividends were factored in, the company’s total return would have been slightly better – it would be a negative 12%.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.