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Posts Tagged ‘Jardine Matheson’

Amazon US deal affects S’pore listco

In Uncategorized on 20/06/2017 at 2:06 pm

Amazon.com just bought its way to the top of the food chain. The e-commerce titan is going whole hog for U.S. groceries with the $13.7 billion acquisition of upscale chain Whole Foods Market. Amazon’s comfort with low margins and savvy in logistics make it so fearsome a rival that investors in the sector ran for cover.

There’s a strong sense from investors that Amazon is upending the entire business. Its own market value increased by $15 billion on the news. More significantly, it caused some $30 billion to disappear from Costco, Wal-Mart Stores, Kroger, Supervalu and other grocery vendors. Fears of Amazon’s domination went global, with UK supermarket chains getting hit, too.

Reuters last friday

In Asia, Oz supermarket shares suffered.

Here Jardine Matheson Holdings, whose subsidiaries include a supermarket operator, was down 1.3% and one of only four stocks in the 30-member Straits Times to be in negative territory yesterday. STI up 0.4% yesterday.

Jardines today down under 1.5% so far.

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Impt of Indonesia to Jardine’s and other local listcos

In Indonesia on 15/04/2014 at 6:03 am

Inonesia was the largest revenue generator for many Singapore-listed companies in their most recent financial year, according to Singapore Exchange (SGX).

One in 10 stocks listed on SGX reported revenues specifically from Indonesia. Of those 80 companies, slightly more than a quarter reported Indonesia as the country that accounted for their largest revenue share.

This excludes stocks which segment revenue to South-east Asia, Asia and the Middle East, or Asia-Pacific regions, such as Jardine Matheson Holdings and Wilmar International.

Jardine Cycle & Carriage (JC&C), a member of the Jardine Matheson group and part of the Straits Times Index, has an interest in Indonesia-listed conglomerate Astra. Together with its subsidiaries and associates, JC&C employs people across Indonesia, Malaysia, Singapore and Vietnam. It has a total market capitalisation of $17.3 billion and a year-to-date total return gain of 35 per cent.

(BT 10 April)

JC&C is the Jardine group’s crown jewel, which reminds me, “Jardine [Matheson] shares have multiplied 10 times in 12 years, never mind the dividends,” according to a recent FT piece. I missed this. In early noughties, I tot of selling HSBC and buying Matheson or Strategic. Never did. Well HSBC (bought in 84) outperformed Jardines in 80s and 90s but went AWOL or MIA in noughties.

I had tot that based on history, Jardines would goof when I decided against the switch. In its attempts to diversify out of HK before the reds came in and ruined HK, it bot rubbish in Hawaii and elsewhere. HSBC backed people like Superman and other local tycoons while diversifying out of HK and into the US and UK. A sensible strategy more in line with Perfidious Albion. In the noughties, it was HSBC that crashed buying a US subprime lender. The losses there would have ruined a Citi or any other more efficient manager of capital. Happily HSBC had lots of fat to lose. And a massive rights issue almost doubled my holding. HSBC is getting its act together.

Still, Jardines would have been better .