The Performance of Jardine C&C (C07)

The Performance of Jardine C&C (C07)

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Brief Background: 

Jardine Cycle & Carriage (JC&C) is a leading Singapore-listed company and a member of the Jardine Matheson Group. JC&C has a strategic interest (50.1) in Astra International, a strong automotive presence through its Direct Motor Interests, as well as diversified businesses comprising Other Interests in key economies.

Recent Events and News:
Jardine C&C released their 2016 Full Yearly Results at 27 Feb, 2017
(see attachment)

Mar 10, ‘How Did Jardine Cycle & Carriage Ltd’s Astra International Business Unit Fare In 2016?’, refer to this article here.

Mar 7, ’New FTSE ST indexes to capture consumer goods, services sector’, Jardine C&C is one of the constituents of the FTSE ST Consumer Goods & Services Liquid 20 Index, refer to the full article here.

Feb 28, ‘Jardine Cycle & Carriage posts higher profit for year’, hear the voice from ST here.

Feb 27, ‘Jardine C&C reports higher profits for FY16’, refer to the article here.

Performance summary:
In the financial year of 2016, JC&C improved their profitability with satisfying performance in Astra International, which contributed 73.6% of the group profit, under the condition that the financial service segment in Astra suffer 78% decline in net income. The group also has a stable balance sheet and holds sufficient free cash flow to handle unanticipated situations. However, the group has lower revenue, profit and return on equity than five years ago. For full recovery to the level in five years ago, JC&C is still get a long way to go.

Financial Highlights:
Operating performance: JC&C has witnessed the decline of both group revenue and net profit since 2012, and reached the valley bottom in the financial year of 2015. However, JC&C managed to get progress on their profitability in the financial result of 2016. Compared to numbers in 2015, JC&C observed a slight increase with $46.3m in revenue, and the net profit edged up 16% to $1497.5m with an improved profit margin from 8.14% to 9.5%.

2. Financial & cash position: JC&C had a stable balance sheet with slight increase in assets, which was mainly contributed from higher Interests in associate and joint ventures. The group’s cash position worth paying attention to. In 2016, JC&C actually generated less cash from operating activities than the number in 2015, the higher free cash flow is a result from accumulated beginning balance in the last year, but the overall trend is upward, which means JC&C kept their cash grow since 2012. Correspondingly, they also had higher cash and cash equivalent in the balance sheet.

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