MENU

A Quick Overview Of Jardine Cycle & Carriage Ltd’s Business – Astra International

Jardine Cycle & Carriage Ltd (SGX: C07) or Jardine C&C is one of the companies related to the web of Jardines companies which 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).

On its own, JCC is a conglomerate, with segments such as automotive, financial services, heavy equipment and mining, agribusiness, information technology, and infrastructure, logistics and others.

These businesses are grouped into 3 segments, namely Astra International, Direct Motor, and Others.

Given the complexity of this business, it may be useful to take a separate look at each of the 3 segments.

In this article, we will do a quick review of the Astra International FY17 first-half business performance.

Source: JCC Q2 FY17 result presentation

The above is a quick summary of the business performance of various segments. A few points from the result above are worth mentioning.

Firstly, all segments have delivered good performances, with the exception of Infrastructure and Information Technology.

Secondly, automotive segment performance improved largely due to higher car sales, which continued to benefit from new model introductions.

Thirdly, financial services profitability increased, due to improvement across the board and also a turnaround of Permata Bank (“driven by an improvement in asset quality and the sale of a portfolio of its nonperforming loans (“NPL”) as planned”).

Lastly, the Heavy Equipment and Agribusiness benefitted from stronger commodity prices. The former was driven by better coal price, whilst the latter benefited from better crude palm oil prices.

Conclusion:

In summary, Astra International had a positive first half in 2017, which is expected to continue into the second half.

If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.The Motley Fool Singapore has recommended shares of Dairy Farm International and Hongkong Land. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.