Jardine Matheson / Jardine Strategic

Jardine Matheson / Jardine Strategic: Credit Suisse notes that underlying earnings for the priod from 1 Jul – 6 Nov ’12 were in line with the same period in 2011 and inline with its forecasts. Notes several positive drivers for the conglos’ key businesses, i) strong performance in the auto and financial services division at Astra ii) healthy vacancy in Nov at 3.9% for HK Land’s Central office portfolio, whiel rental reversions were generally positive, and iii) improvement in sales and earnings at Dairy Farm, driven by strong performance in Greater China and Indonesia. The house maintains Outperform ratings for JM (TP US$70 ) and JS (TP US$40), with target prices based on a 25% and 35% discount to NAV, respectively, in line with their historical averages.