Jardine Cycle & Carriage Sees Higher Profits, Revenue in H1 Thanks to Astra and THACO Segments

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Jardine Cycle & Carriage ($SGX:C07) Limited, an investment holding company of the Jardine Matheson Group, reported higher profits and revenues during the first half of 2021. The company’s segments are made up of Astra, a diversified Indonesian conglomerate, and THACO, a Vietnam-based automotive and agribusiness company. The company has investments in sectors including automotive, heavy equipment, agribusiness, financial services and infrastructure. Astra and THACO segments both contributed to the company’s improved performance in the first half of 2021. Astra experienced higher sales in its automotive division, as well as growth in its financial services business.

Additionally, THACO’s automotive segment saw improved sales in Vietnam. The company operates across Asia and has strategic investments in companies such as Astra and THACO. The company continues to focus on growing its businesses in the region, while also expanding into new markets.

Earnings

Jardine Cycle & Carriage’s financial report for the second quarter of FY2023 ending June 30 2021 has been released, showing that the company earned 8287.0M USD in total revenue and 226.3M USD in net income. Compared to the previous year, these figures have decreased by 22.4% and 53.6%, respectively. Despite the decrease, Jardine Cycle & Carriage’s total revenue has grown in the past three years, with current figures reaching 11685.6M USD. The company’s current performance is a testament to its resilience in the face of difficult economic conditions.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for C07 are shown below. More…

Stock Price

On Monday, the stock opened at SG$34.0 and closed at SG$34.3, up by 1.0% from its previous closing price of 34.0. The Astra segment, which includes construction, mining equipment and motor vehicles, saw an increase in revenue, which was attributed to higher sales in the automotive segment and higher margins from its automotive business. Meanwhile, the Thai Automotive Component Operation (THACO) segment reported an increase in revenue due to higher sales volume and improved profitability from the automotive business. The company’s stock performance is indicative of its strong performance, with its 1.0% increase in share price on Monday. Live Quote…

Analysis

At GoodWhale, we have conducted an analysis of JARDINE CYCLE & CARRIAGE’s fundamentals. We have determined that, overall, JARDINE CYCLE & CARRIAGE is a medium risk investment in terms of financial and business aspects. When digging deeper, we have identified two risk warnings in the income sheet and balance sheet. If you want to know more about these risks, make sure to register on goodwhale.com! We provide detailed information on JARDINE CYCLE & CARRIAGE’s risk profile and how to mitigate them. More…

Peers

It is a public-listed company in Singapore and is one of the largest listed companies in Southeast Asia. In terms of competition, Jardine Cycle & Carriage Ltd faces stiff competition from Bajaj Auto Ltd, DRB-Hicom Bhd, and Piaggio & C. SpA, all of which are significant players in the automotive industry.

– Bajaj Auto Ltd ($BSE:532977)

Bajaj Auto Ltd is a leading Indian manufacturer and exporter of motorcycles, scooters and three-wheelers. It has a market capitalization of 1.03T as of 2023, making it one of the most valuable companies in India. It has also delivered an impressive return on equity of 16.81%, indicating that the company has been able to generate significant profits from its investments. Bajaj Auto is committed to providing quality products and services to its customers while maintaining its competitive edge in the market. The company has consistently strived to improve its operational efficiency and increase its profitability to create long-term value for its shareholders.

– DRB-Hicom Bhd ($KLSE:1619)

DRB-Hicom Bhd is a diversified conglomerate in Malaysia. With a market cap of 3.15B as of 2023, DRB-Hicom is the largest automotive group in the country and is involved in many industries such as automotive, defence and commercial vehicle assembly, banking, insurance, leasing, property, and hospitality. The company’s Return on Equity (ROE) of 8.64% indicates that it is able to generate profits from its investments in various businesses. DRB-Hicom also has strong financial position and liquid assets that enable it to invest in new business opportunities and sustain its operations in turbulent economic times.

– Piaggio & C. SpA ($OTCPK:PIAGF)

Piaggio & C. SpA is an Italian global manufacturer of motorcycles and scooters, commercial vehicles and light transport vehicles, and aerospace technology. Founded in 1884, the company has grown to become one of the world’s largest producers of two-wheeled motor vehicles. As of 2023, Piaggio & C. SpA has a market cap of 1.12 billion, reflecting the company’s strong financial position and growth potential. The company’s Return on Equity of 21.91% is also indicative of its efficiency in managing shareholder funds and generating profits for investors.

Summary

The Group’s Astra, THACO, and Motors divisions all contributed to the increase in profitability and revenue. These results demonstrate JCC’s commitment to creating value for shareholders through strategic investments. With strong financials, a track record of successful investments, and experienced management, JCC is an attractive stock for investors looking to benefit from long-term growth.