Your 60-Second Guide to Jardine Cycle & Carriage Ltd (SGX: C07) Shares
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Your 60-Second Guide to Jardine Cycle & Carriage Ltd (SGX: C07) Shares

Sudhan P
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In this series, we feature one Singapore-listed company each time as a quick guide to important things you should know about it in 60 seconds.

Right here, we have Jardine Cycle & Carriage Ltd (SGX: C07). Previously, we featured Mapletree Logistics Trust (SGX: M44U).

What’s Jardine Cycle & Carriage’s Business About? 

Jardine Cycle & Carriage is a diversified group that seeks to grow with the region by investing in market-leading businesses based on the themes of urbanisation and the emerging consumer class.

The conglomerate has a strategic interest in Astra International, the largest automotive company in Indonesia. It also has stakes in Vietnam’s Vinamilk and Thailand’s Siam City Cement.

The following shows Jardine Cycle & Carriage’s business overview, together with its stake in the various companies that it owns in Southeast Asia:

Jardine Cycle and Carriage group overview
Source: Jardine Cycle and Carriage 2019 annual report

Jardine Cycle & Carriage is 75%-owned by Jardine Matheson Holdings Limited (SGX: J36).

Jardine Cycle & Carriage’s Financial Highlights 

Here’s a quick snapshot showing how Jardine Cycle & Carriage has performed financially from 2015 to 2019 (the conglomerate has a 31 December year-end):

 20152016201720182019
Revenue
(US$' million)
15,718.315,764.0 17,336.718,991.818,591.1
Net profit
(US$' million)
690.8 701.7938.8 417.6881.4
Underlying net profit
(US$' million)
631.8679.1769.5856.0863.1
Underlying earnings per share
(US cents)
167 172195217218
Cash flow from operations
(US$' million)
1,847.81,416.51,654.92,613.9 1,712.3
Gearing (excluding financial services companies)N/AN/A6%16%20%

Both revenue and underlying net profit have been on a gradual uptrend over the past five years. Underlying net profit excludes items such as fair value gains or losses on the revaluation of investment properties, and gains and losses arising from the sale of businesses, investments and properties.

Investors who are looking to invest in Jardine Cycle & Carriage should keep in mind that it is in a net debt position of US$3,048.2 million right now, compared to a net cash position of US$254.9 million in 2015. 

Jardine Cycle & Carriage’s Dividend History

Jardine Cycle & Carriage’s dividend per share has been growing over the years:

 Total dividend per share
(US cents)
Dividend payout ratio
20156943%
201674 43%
20178644%
20188740%
20198740%

In 2019, Jardine Cycle & Carriage paid out 87 US cents in dividend, and the dividend looks well covered due to its conservative dividend payout ratio.

One Major Risk for Jardine Cycle & Carriage to Take Note Of

Jardine Cycle & Carriage relies heavily on the Indonesian economy and the automotive sector there to power its business. There’s a lot of potential in the Southeast Asian country, but that also brings about its own set of risks.

Jardine Cycle and Carriage net profit breakdown

Source: Jardine Cycle and Carriage 2019 annual report

As seen from the pie charts above, in terms of underlying net profit by geography and sector in 2019, Indonesia and the automotive industry, respectively, took up the bulk of underlying earnings.

In my opinion, the lack of business diversity for Jardine Cycle & Carriage is one main risk that potential investors should take note of.

Jardine Cycle & Carriage’s Share Price and Valuation

Jardine Cycle & Carriage’s share price has not performed well over the past five years, tumbling around 50%.

Jardine Cycle and Carriage share price Seedly
Source: Google Finance

At its current share price of S$20.09, Jardine Cycle & Carriage has a price-to-earnings ratio of 6 and a dividend yield of 6.1%.

Want to Discuss Further?

Why not check out the Seedly Community and participate in the lively discussion surrounding stocks and many more!

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. 

About Sudhan P
It isn't fair competition when only one company in the world makes Monopoly. But I love investing in monopolies. Before joining the Seedly hood, I had the chance to co-author a Singapore-themed investment book – "Invest Lah! The Average Joe's Guide To Investing" – and work at The Motley Fool Singapore as an analyst.
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