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10 Quick Things Investors Should Know About Jardine Strategic Holdings Limited’s First Half of 2018 Results

At the end of July 2018, Jardine Strategic Holdings Limited (SGX: J37)  reported its 2018 first half earnings update. As a quick introduction, Jardine Strategic is a conglomerate with interests in a web of Jardine 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, let’s look at 10 things that investors should know from Jardine Strategic’s latest earnings update:

1. Revenue for the first half of the year increased 13% year-on-year to US$16.9 billion.

2. Underlying operating profit (excluding non-trading items) improved 26% year-on-year to US$1.8 billion.

3. Underlying net profit attributable to shareholders climbed 9% year-on-year to US$828 million.

4. Similarly, underlying earnings per share (EPS) rose 11% US$1.45.

5. During the period, underlying operating profit margin was higher at 10.4%, up from 9.4% in the corresponding period last year.

6. Year-to-date, Jardine Strategic generated operating cash flow of US$1.4 billion, down from US$2.1 billion in the same period last year.

7. As at 30 June 2018, the company’s net debt stood at US$8.6 billion, up from US$7.2 billion, as at 31 December 2017.

8. All segments, with the exception of Hongkong Land, reported year-on-year growth in underlying profit.

9. The company recommended an interim dividend per share of US 10 cents, up from US 9.50 cents last year.

10. Jardine Strategic’s Chairman, Sir Henry Keswick, commented:

“After a good performance in the first half of 2018 driven primarily by Astra and Jardine Cycle & Carriage, we are optimistic for a stronger second half of the year, with these companies continuing to perform well and the contributions of other businesses expected to improve.”

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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, Mandarin Oriental Limited and Dairy Farm.