JMH 400US$ - Jardine Matheson target raised to US$54.00 by HSBC

Stock Name: JMH 400US$
Company Name: JARDINE MATHESON HLDGS LTD
Research House: HSBC

HSBC raises Jardine Matheson (J36.SG) target price to US$54.00 ($71) vs US$46.00 to reflect recent upgrades in FY11-FY12 earnings estimates for units Astra International (ASII.JK), Dairy Farm (D01.SG), Hongkong Land (H78.SG).

Keeps Overweight call.



“Jardine Matheson generates the best returns in its peer group and this drives strong cash generation. We argue this performance is sustainable given that its key businesses are market leaders and substantial barriers to entry remain.”

Forecasts 13% recurring net profit CAGR over 2011-2012. Expects group to have no net debt by 2011, “comfortably” invest up to US$2.5 billion in new projects, acquisitions. Shares +0.4% at US$45.56.