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

Jardine Strategic Holdings Limited (SGX: J37) 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 Matheson Holdings Limited (SGX: J336).

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

Overall result

Source: Jardine Strategic FY17 First Half Result Announcement

As a whole, we see that Jardine Strategic delivered improvements 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 Strategic FY17 First Half Result Announcement

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

At a glance, we see that most businesses performed stronger in the first half of 2017 as compare to the same period last year.

The weaker performance in Jardine Cycle & Carriage’s business was due to weaker vehicle sales in its Direct Motor business.

Market value of assets

Source: Jardine Strategic FY17 First Half Result Announcement

The above is a quick summary of the market value of Jardine Stratgic’s ownership of various companies within its web.  Most of the above is calculated using the actual listed market capitalisation of these companies.

Comparatively, the current market price of Jardine Strategic’s stock is US$ 44.50, a 26% discount to the market value of its various business interests.

Conclusion:

Overall, a positive first half for Jardine Strategic with stronger metrics across the board.

Yet, the company is currently trading at a discount to the market value of its ownership of various companies.

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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.