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10 Quick Things Investors Should Know About Jardine Strategic Holdings Limited 2017 Result

Recently, Jardine Strategic Holdings Limited (SGX: J37)  reported its 2017 earnings results. As a quick introduction, Jardine Strategic is a conglomerate with interests in the web of Jardines companies such as 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).

Here are 10 things that investors should know about its Jardine Strategic Holdings’ 2017 results:

1. Revenue increased 7% year-on-year to US$ 31.6 billion.

2. Underlying operating profit (excluding non-trading items) improved 3% year-on-year to US$ 3.0 billion.

3. Underlying full year profit attributable to shareholders improved 11% year-on-year to US$1.6 billion.

4. Similarly, underlying earnings per share (EPS) was up by 13% year-on-year to US$ 2.76.

5. Operating profit margin for 2017 was marginally lower at 9.4%, compared to the margin of 9.7% recorded in FY16.

6. Jardine Strategic generated operating cash flow of US$ 3.8 billion in 2017, up from US$3.4 billion in 2016.

7. As at 31 December 2017, the company’s non-financial services net debt stood at US$ 3.8 billion, up from the US$2.0 billion recorded on 31 December 2016.

8. Moving to its business segments, Jardine Matheson, Hong Kong Land and Astra reported year-on-year growth in underlying profit. On the other hand, Dairy Farm, Mandarin Oriental and Jardine Cycle and Carriage (excluding Astra) reported year-on-year decline in underlying profit.

9. The company recommended a final dividend per share of US 22.5 cents. Including interim dividend of 9.5 cents, total dividend per share for 2017 will be US 32 cents, up 7% year-on-year.

10. Jardine Strategic Holdings’ chairman, Sir Henry Keswick, commented on its 2018 outlook:

“The Group’s key markets in Greater China and Southeast Asia look well placed for 2018 as the good levels of economic growth seen in 2017 appear set to continue.

This, when coupled with the development initiatives that are being pursued across the Group’s businesses, provides the basis for future profit growth.”

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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.