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These 2 Singapore Companies Have Recently Announced Stronger Performances

We are now getting to the end of the current earnings season.

Many companies have reported their results in the past few weeks — some of them have had good news to share, and some bad. Today we’re looking at two companies that delivered growth in their latest results.

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First up is Jardine Strategic Holdings Limited (SGX: J37), a conglomerate with interest in the web of Jardines companies that include Jardine Cycle & Carriage Ltd (SGX: C07), Hongkong Land Holdings Limited (SGX: H78), Jardine Matheson Holdings Limited (SGX: J36), and others.

For the full year ended 31 December 2018, Jardine Strategic reported that revenue increased 11% year on year to US$34.1 billion. Underlying full-year operating profit (excluding non-trading items) jumped 27% year on year to US$3.7 billion. Similarly, underlying full-year profit attributable to shareholders improved 14% year on year to US$1.8 billion. The strong result was across all business segments.

As of 31 December 2018, the company’s non-financial services net debt stood at US$6.0 billion (10% gearing), up from US$3.8 billion as of 31 December 2017. The company also recommended a final dividend per share of US$0.24. Including an interim dividend of US$0.10, the total dividend per share for FY18 would be US$0.34, up 6% year on year.

Jardine Strategic’s Chairman and Managing Director Ben Keswick commented:

“After a good performance in 2018 driven primarily by Astra, Hongkong Land and Jardine Cycle & Carriage, we expect the Group to face more challenging conditions in 2019 due to economic uncertainties affecting consumer sentiment and commodity prices.”

Next up is Jardine Matheson Holdings Limited (SGX: J36), a conglomerate with interest in the web of Jardines companies. It is also a shareholder of its sister company, Jardine Strategic.

For the full year ended 31 December 2018, Jardine Matheson reported that sales revenue increased 10% year on year to US$42.5 billion. Underlying full-year operating profit (excluding non-trading items) improved 13% year on year to US$4.0 billion. Consequently, underlying full-year profit attributable to shareholders improved 10% year on year to US$1.7 billion. The strong result was across all business segments, with the exception of Jardine Motors.

As of 31 December 2018, the company’s non-financial services net debt stood at US$5.9 billion (10% gearing), up from US$3.4 billion (6% gearing) as of 31 December 2017. Also, Jardine Matheson recommended a final dividend per share of US$1.28. Including an interim dividend of US$0.42, the total dividend per share for FY18 would be US$1.70, up 6% year on year.

Jardine Matheson’s Chairman and Managing Director, Ben Keswick, commented:

“After a good performance in 2018 driven primarily by Astra, Hongkong Land and Jardine Cycle & Carriage, we expect the Group to face more challenging conditions in 2019 due to economic uncertainties affecting consumer sentiment and commodity prices.”

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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. The Motley Fool Singapore recommends Hongkong Land Holdings.