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The Different Ways Jardine Strategic Holdings Limited Generates Its Profits

Jardine Strategic Holdings Limited (SGX: J37), or JSH, is a conglomerate with interests in a web of Jardine companies, including Jardine Cycle & Carriage Ltd (SGX: C07), Hongkong Land Holdings Limited (SGX: H78), Jardine Matheson Holdings Limited (SGX: J336), and Dairy Farm International Holdings Ltd (SGX: D01).

One of the main reasons investors find analysing Jardine Strategic challenging is due to its complex structure. In this article, we will try to understand one aspect of the company – how does it makes its profits. Fortunately, this is relatively straight forward.

Underlying profit by business segments

Source: Jardine Strategic 2017 Annual Report

Above is a table showing the breakdown of Jardine Strategic’s underlying profit by business segments.

Overall, we can see that 92% of Jardine Strategic’s 2017 underlying profit was derived from four subsidiaries, namely, Hongkong Land, Astra, Dairy Farm and Jardine Matheson.

Undelying profit by region

Source: Jardine Strategic 2017 Annual Report

Above is a table showing the breakdown of underlying profit into four regions. There are two important things to note from the table above.

Firstly, more than 96% of Jardine Strategic’s 2017 underlying profit was derived from Greater China and South East Asia. Secondly, Greater China’s underlying profit grew rapidly during the year, up by about 24% on a year-on-year basis.

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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 Holdings Limited and Dairy Farm International Holdings Ltd.