Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a> has <a href="https://links.sgx.com/FileOpen/JMH.ashx?App=Announcement&amp;FileID=693661" target="_blank" rel="noopener">announced</a> it intends to increase the amount of its share buyback programme announced on 30th September 2021 by US$250mn to US$500mn.</li>
<li>JMH has already acquired close to US$250mn of shares under the initial buyback. All shares repurchases will be canceled.</li>
<li>Separately, the appraisal rights proceedings for dissenting shareholders of <a href="https://www.smartkarma.com/entities/jardine-strategic-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15081:1" rel="noopener">Jardine Strategic Holdings (JS SP)</a> is now underway in the Supreme Court of Bermuda.</li>
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Jardine Matheson Holdings (JM SP) has announced it intends to increase the amount of its share buyback programme announced on 30th September 2021 by US$250mn to US$500mn.
JMH has already acquired close to US$250mn of shares under the initial buyback. All shares repurchases will be canceled.
Separately, the appraisal rights proceedings for dissenting shareholders of Jardine Strategic Holdings (JS SP) is now underway in the Supreme Court of Bermuda.


Matheson Doubles Buybacks As Strategic Dissentient Shareholders Make Their Case

Equity Bottom-Up

Jardine Matheson Holdings / Equity Bottom-Up

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<p>On the 6th September, <a href="https://www.smartkarma.com/entities/hongkong-land-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15465:1" rel="noopener">Hongkong Land (HKL SP)</a> <a href="https://links.sgx.com/FileOpen/HKLH0906.ashx?App=Announcement&amp;FileID=682657" target="_blank" rel="noopener">announced</a> a US$500mn share buyback program, which will run until 31st December 2022. Based on the average daily volume over the last year of US$9-10mn, this buyback is roughly equivalent to ~15% of daily volume through to 2022 year-end. Pretty punchy.</p>
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<p>In <em><a href="https://skr.ma/aFS5q" target="_blank" rel="noopener">Hongkong Land's (HKL SP) Big Buyback</a></em>, I said the Jardine's group evidently believes it makes good business sense to buy back its own shares in place of deploying capital into HKL's investment and development property portfolio.</p>
<p>Now it's <a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a>'s turn to buy back its own shares. </p>
<p>Yesterday the conglomerate <a href="https://links.sgx.com/FileOpen/JMH.ashx?App=Announcement&amp;FileID=685150" target="_blank" rel="noopener">announced</a> a US$250mn buyback which will run through to 30 June next year.</p>
<p>As with HKL, the holding of treasury shares is not permitted in JMH's constitution, therefore any shares repurchased will be cancelled.</p>
<p>I see JMH's discount to NAV at ~30%, around its lowest level since taking <a href="https://www.smartkarma.com/entities/jardine-strategic-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15081:1" rel="noopener">Jardine Strategic Holdings (JS SP)</a> private.</p>
<p>We now have some indication as to what the Keswick family considers a cheap entry-level. </p>
<p>More below the fold.</p>
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On the 6th September, Hongkong Land (HKL SP) announced a US$500mn share buyback program, which will run until 31st December 2022. Based on the average daily volume over the last year of US$9-10mn, this buyback is roughly equivalent to ~15% of daily volume through to 2022 year-end. Pretty punchy.


In Hongkong Land's (HKL SP) Big Buyback, I said the Jardine's group evidently believes it makes good business sense to buy back its own shares in place of deploying capital into HKL's investment and development property portfolio.
Now it's Jardine Matheson Holdings (JM SP)'s turn to buy back its own shares. 
Yesterday the conglomerate announced a US$250mn buyback which will run through to 30 June next year.
As with HKL, the holding of treasury shares is not permitted in JMH's constitution, therefore any shares repurchased will be cancelled.
I see JMH's discount to NAV at ~30%, around its lowest level since taking Jardine Strategic Holdings (JS SP) private.
We now have some indication as to what the Keswick family considers a cheap entry-level. 
More below the fold.






Jardine Matheson's (JM SP) Turn To Buy Back Shares

<p>Yesterday after the close of trading, <a href="https://www.smartkarma.com/entities/hongkong-land-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15465:1" rel="noopener">Hongkong Land (HKL SP)</a> <a href="https://links.sgx.com/FileOpen/HKLH0906.ashx?App=Announcement&amp;FileID=682657" target="_blank" rel="noopener">announced</a> a US$500mn share buyback program, which will run until 31st December 2022.</p>
<p>As the holding of treasury shares is not permitted in HKL’s constitution, any shares repurchased will be canceled.</p>
<p>Based on the average daily volume over the last year of US$9-10mn, this buyback is roughly equivalent to ~15% of daily volume through to 2022 year-end. That's pretty meaningful.</p>
<p>Jardine evidently believes it makes good business sense to buy back its own shares in place of deploying capital into HKL's investment and development property portfolio.</p>
<p>At a ~68% discount its NAV of US$14.75 (as at 30 June) - even after today's move - HKL is cheap. Jardines think so too.</p>
<p>Buy on any weakness.</p>

Yesterday after the close of trading, Hongkong Land (HKL SP) announced a US$500mn share buyback program, which will run until 31st December 2022.
As the holding of treasury shares is not permitted in HKL’s constitution, any shares repurchased will be canceled.
Based on the average daily volume over the last year of US$9-10mn, this buyback is roughly equivalent to ~15% of daily volume through to 2022 year-end. That's pretty meaningful.
Jardine evidently believes it makes good business sense to buy back its own shares in place of deploying capital into HKL's investment and development property portfolio.
At a ~68% discount its NAV of US$14.75 (as at 30 June) - even after today's move - HKL is cheap. Jardines think so too.
Buy on any weakness.

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<p><em><strong>This week in StubWorld ...</strong></em></p>
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<p><a href="https://www.smartkarma.com/entities/jardine-cycle-carriage-ltd" target="_blank" data-smartkarma-citation="entities:347:1" rel="noopener">Jardine Cycle &amp; Carriage (JCNC SP)</a>, relative to <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a>, is around record-lows outside the Covid-affect low last year. This is occurring amid recent corporate developments within the Jardine stable of companies.</p>
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<p>Preceding my comments on JCNC are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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This week in StubWorld ...



Jardine Cycle &amp; Carriage (JCNC SP), relative to Astra International (ASII IJ), is around record-lows outside the Covid-affect low last year. This is occurring amid recent corporate developments within the Jardine stable of companies.



Preceding my comments on JCNC are the weekly setup/unwind tables for Asia-Pacific Holdcos.


These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


<p>In my prior insight <em><a href="https://skr.ma/h4f6C" target="_blank" rel="noopener">Jardine Matheson: Lessons in Dissent</a></em> on the 29 April, I thought <a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a> was unattractive at a 13% discount to NAV, plus near-term news may focus on <a href="https://www.smartkarma.com/entities/jardine-strategic-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15081:1" rel="noopener">Jardine Strategic Holdings (JS SP)</a>'s dissension rights, and Matheson's potential exposure thereon.</p>
<p>Matheson is down ~15% since that note (while the Straits Times Index is down ~4%). </p>
<p>Since that insight, Matheson released its <a href="https://www.jardines.com/assets/files/NewsAndEvents/corporate-press-releases/jardine-matheson/int21.pdf" target="_blank" rel="noopener">interim results</a>, which not only provided clarity on the net debt at the parent level, which was largely guesswork amid the Matheson/<a href="https://www.smartkarma.com/entities/jardine-strategic-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15081:1" rel="noopener">Jardine Strategic Holdings (JS SP)</a> circularity; but also unlisted stub ops - especially Jardine Motors - performed exceptionally in the 1H21.</p>
<p>At a ~23% discount to NAV on adjusted historical NAVs, value <em>is</em> emerging. Yet Matheson is not an obvious buy here.</p>
<p>More below the fold. </p>

In my prior insight Jardine Matheson: Lessons in Dissent on the 29 April, I thought Jardine Matheson Holdings (JM SP) was unattractive at a 13% discount to NAV, plus near-term news may focus on Jardine Strategic Holdings (JS SP)'s dissension rights, and Matheson's potential exposure thereon.
Matheson is down ~15% since that note (while the Straits Times Index is down ~4%). 
Since that insight, Matheson released its interim results, which not only provided clarity on the net debt at the parent level, which was largely guesswork amid the Matheson/Jardine Strategic Holdings (JS SP) circularity; but also unlisted stub ops - especially Jardine Motors - performed exceptionally in the 1H21.
At a ~23% discount to NAV on adjusted historical NAVs, value is emerging. Yet Matheson is not an obvious buy here.
More below the fold. 

Jardine Matheson: Value Gradually Emerging Four Months On

Singapore

DFI Retail Group Holdings Ltd operates as a holding company. The Company, through its subsidiaries, focuses on retail stores such as supermarkets, drugstores, and convenience stores. DFI Retail Group Holdings serves customers in Asia.

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DFI Retail Group Holdings (DFI SP)

Matheson Doubles Buybacks As Strategic Dissentient Shareholders Make Their Case

Matheson has announced it intends to increase the amount of its share buyback programme by US$250mn to US$500mn. Court proceedings for Strategic...

David Blennerhassett

Jardine Matheson's (JM SP) Turn To Buy Back Shares

The Keswick's believe at current levels, there is better value to be had buying its own shares rather than investing elsewhere. As with HKL, JMH is...

David Blennerhassett

Hongkong Land's (HKL SP) Big Buyback

HKL has historically traded cheap, both on a standalone basis, and with respect to peers. This buyback is the catalyst to narrow that discount to...

David Blennerhassett

StubWorld: JCNC Is A Set-Up Here

Jardines appear to be increasingly more proactive on the corporate front of late. Not being a UK listing, JCNC is unlikely to be tabled a derisory...

David Blennerhassett

Jardine Matheson: Value Gradually Emerging Four Months On

Collapsing the circularity and removing its complexity should drive interest in Matheson. And holdings like HKL are cheap at 0.3x P/B. The pushback...

David Blennerhassett

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