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An Investor’s Quick Overview Of Jardine Matheson Holding Limited’s Business – Jardine Motor

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), Jardine Lloyd Thompson, Jardine Pacific and Jardine Motor.

Given the complexity of this business, it may be useful for us to take a look at each of the segment separately. In this article, we review Jardine Motor FY17 first half business performance.

As a quick introduction, Jardine Motor’s business is in the sales and service of motor vehicles in Hong Kong, Macau, mainland China and the United Kingdom.

Profit breakdown:

Source: Jardine Matheson FY17 First Half Result Presentation

The above is a quick overview of Jardine Motor’s business.

In Mainland China, “trading results from both Zung Fu and Zhongsheng were strong with good volume growth and improved margins.”

In Hong Kong, Zung Fu’s “performance was stable, and work is continuing on its new showroom and workshop facilities, which will complete in mid-2018.”

On the other hand, the UK had a challenging time with profitability down by 65%. This was after accounting for $10 million gain in disposal of a dealership. Excluding the gain, UK segment would have been negative for the first half of FY2017.

Conclusion:

Overall, Jardine Motor had a positive start for FY17 driven mainly by stronger performance in China, offset slightly by weaker performance in UK.

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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 recommendations for Hongkong Land and Dairy Farm.