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The Good And The Bad That Investors Should Know From Jardine Strategic Holdings Limited’s 2018 First-Half Results

Jardine Strategic Holdings Limited (SGX: J37) is a conglomerate with interest in the web of Jardines companies, which includes 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: J36).

The company recently released its first half of 2018 results. In this article, I will look at the positive and negative points from the announcement.

The positives

First of all, the conglomerate reported stronger revenue and underlying profitability for the first half of 2018. Revenue increased 13% year-on-year to US$16.9 billion while underlying earnings per share was up by 11% year-on-year to US$1.45.

Secondly, most segments reported stronger underlying profit. Year-on-year, Jardine Matheson, Dairy Farm, Mandarin Oriental and Jardine C&C saw their profit go up by 9%, 2% and 10% respectively.

Thirdly, Jardine Strategic declared an interim dividend per share of US 10 cents, up from US 9.50 cents last year.

The negatives

First of all, Hongkong Land reported a 3% year-on-year decline in underlying profit as a result of lower profits from development properties. This was due to timing of sales completion in mainland China.

Secondly, Jardine Strategic generated operating cash flow of US$1.4 billion, down from US$2.1 billion in the same period last year. The lower operating cash flow was mainly driven by negative working capital movements.

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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 and Dairy Farm.