Tuesday, December 7, 2010

JMH 400US$ - Jardine Matheson, Jardine Strategic targets raised by CLSA

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


CLSA lifts target prices for Jardine Matheson (J36.SG) to US$54 ($70.5) vs US$52 based on 20% discount to NAV, Jardine Strategic (J37.SG) to US$31 vs US$30 on 30% discount to NAV.



Keeps both at Outperform; “steep NAV discounts and low valuation multiples renders the risk-reward positive for these holding companies.” Says earnings prospects hinge on sustainability of growth in Southeast Asia, “which seems plausible at present”.


Says stronger Asian currencies bode well for companies, which report results in USD. Adds hotel unit Mandarin Oriental (M04.SG) still benefiting from recovery off low base due to fallout from global financial crisis, while growth at retail arm Dairy Farm (D01.SG) “typically surprises on the upside during inflationary periods”. Matheson off 2.6% at US$44.80, Strategic off 1.3% at US$26.52.



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