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3 Things That Investors Should Know About Jardine Matheson Holding Limited FY17 First Half Result

Credit: Lali Masriera

Jardine Matheson Holdings Limited (SGX: J336) is a conglomerate with interest in the web of Jardines companies which include Jardine Cycle & Carriage Ltd (SGX: C07), Hongkong Land Holdings Limited (SGX: H78), Dairy Farm International Holdings Ltd (SGX: D01), Mandarin Oriental Limited (SGX: M04) and Jardine Lloyd Thompson.

The company recently reported its first-half results for FY17. In this article, we will look at three useful pieces of information from the announcement.

Overall result

Source: Jardine Matheson FY17 First Half Result Announcement

As a whole, we see that Jardine Matheson delivered improvement in all of the metrics above.

The “higher” growth in profit attributable to shareholders as compare to underlying profit attributable to shareholders is due to an increase in fair value in investment properties.

Breakdown of segment performance

Source: Jardine Matheson FY17 First Half Result Announcement

The above is a quick overview of the performance of various businesses within Jardine Matheson.

At a glance, we see that all businesses, with the exception of Mandarin Oriental and Jardine Cycle & Carriage, delivered growth in underlying profit in the first half of 2017 as compare to 2016.

The weaker performance at Mandarin Oriental was primarily due to its London hotel renovation, whilst the weaker performance in Jardine Cycle & Carriage was due to weaker motor business.

Outlook for FY17

Sir Henry Keswick, the group’s chairman, made the following comment about outlook:

“Following a first half with good trading performances across the Group, the level of profit growth in the second half is likely to be tempered due to fewer residential completions expected in Hongkong Land and price competition in a number of the Group’s automotive markets. “

In other words, we might see challenges for the company in the second half of 2017.

Conclusion:

Overall, a positive start for Jardine Matheson with a growth in revenue and underlying profitability.

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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. Motley Fool has a buy recommendation for Hongkong Land and Dairy Farm.