Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener"><strong>Jardine Matheson Holdings (JM SP)</strong></a>'s underlying net profit in FY21 was up 39% against 2020, and just 5% shy of 2019's level.</li>
<li>The latest US$250mn buyback program appears to have been completed.</li>
<li>Shares are down ~5% since the FY21 results. At a ~28% discount to NAV, JMH is inexpensive here. </li>
</ul>



Jardine Matheson Holdings (JM SP)'s underlying net profit in FY21 was up 39% against 2020, and just 5% shy of 2019's level.
The latest US$250mn buyback program appears to have been completed.
Shares are down ~5% since the FY21 results. At a ~28% discount to NAV, JMH is inexpensive here. 


Jardine Matheson (JM SP): Reloading The Buyback?

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Cross Asset Strategy

<ul>
<li>The week that was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.</li>
<li>This week we look at <a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" data-smartkarma-citation="entities:1050:1" rel="noopener">Link Net (LINK IJ)</a> post a call with management plus aggressive buybacks from <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> plus update in <a href="https://www.smartkarma.com/entities/genting-bhd" target="_blank" data-smartkarma-citation="entities:14210:1" rel="noopener">Genting Bhd (GENT MK)</a> </li>
<li>We also comment on WeLab acquiring a digital bank in Indonesia and the government's ongoing stimulus measures for property and retail in Indonesia.</li>
</ul>


The week that was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.
This week we look at Link Net (LINK IJ) post a call with management plus aggressive buybacks from Jardine Matheson Holdings (JM SP) plus update in Genting Bhd (GENT MK) 
We also comment on WeLab acquiring a digital bank in Indonesia and the government's ongoing stimulus measures for property and retail in Indonesia.


The Week That Was in ASEAN@Smartkarma - Link Net, Jardine Matheson, and WeLab

<ul>
<li>
<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>
</ul>



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

<div>
<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>
</div>
<div>
<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>
</div>
<div></div>
<div>
<p></p>
</div>


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

<div>
<p><em><strong>This week in StubWorld ...</strong></em></p>
</div>
<div>
<div class="content-highlight">
<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>
</div>
</div>
<div>
<p>Preceding my comments on JCNC are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
</div>
<div>
<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>
</div>


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%.


Singapore

Jardine Strategic Holdings Limited is a holding company with principal interests in Jardine Matheson, Dairy Farm, Hongkong Land, Mandarin Oriental, and Cycle and Carriage.  The Company, through its subsidiaries, operates auto distribution, food and retailing, property investment, property development, and hotel operations.

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Jardine Strategic Holdings (JS SP)

Jardine Matheson (JM SP): Reloading The Buyback?

Given JMH's strong underlying performance and discount to NAV, another round of buybacks is feasible. Especially given management was consistently...

David Blennerhassett

The Week That Was in ASEAN@Smartkarma - Link Net, Jardine Matheson, and WeLab

The week that was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity...

Angus Mackintosh

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

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

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