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2 Key Takeaways From Jardine Strategic Holdings Limited’s 2017 Annual Report

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).

The company recently published its annual report for the year ended 31 December 2017. Given that reading an annual report is one of the best ways to keep up with a company’s developments, I decided to go through Jardine Strategic’s latest annual report to understand how it had performed in 2017, and to find out more about its growth prospects.

With that, here’s what I found interesting about the company from the document.

2017 performance

For the year ended 31 December 2017 (FY2017), Jardine Strategic’s revenue increased 7% year-on-year to US$31.6 billion. Underlying full year profit attributable to shareholders improved 11% year-on-year to US$1.6 billion. Excluding non-trading items, underlying full year operating profit improved 3% year-on-year to US$3.0 billion. Similarly, underlying earnings per share (EPS) was up by 13% year-on-year to US$ 2.76.

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 declines in underlying profit. The company recommended a final dividend per share of US 22.5 cents. Including the interim dividend of 9.5 cents, total dividend per share for FY2017 would be US 32 cents, up 7% year-on-year.

2018 outlook

In his letter, Jardine Strategic’s chairman, Sir Henry Keswick, shared his view on the conglomerate’s prospects in 2018:

“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.”

The Foolish takeaway

In all, it was a positive year for Jardine Strategic with growth in both its top- and bottom-line. Further growth is expected in 2018 for its Greater China and Southeast Asia’s businesses.

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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.