Jardine C&C

Jardine C&C: FY12 revenues increased 7% to US$21.5b, earnings declined 4% to $987m. Decline in earnings largely due to the decline in the US$/ rupiah exchange rate, amidst the strong results from Astra's operations. Motor car segment Astra continues to benefit from the growth of Indonesia's economy, rising income per capita, and low pentration on car ownership. Group's motor car sales increased 25% y/y and has a stable market share of 54%. Heavy machinery segment 60%-owned United Tractors, reported a 2% decline in earnings to US$614m, due to a sales volume decline of 27% on Komatsu heavy equipment. Wholly attributed to the lower demand from the mining sector with the fall in coal prices, as well as the increased competition from the Chinese players within the China market. Mgmt stated that Astra is expected to have a satisfactory year in 2013, although its performance will be influenced by commodity prices and the effects of minimum down-payment regulations in automotive financing. The Group’s other motor interests will continue to face challenging trading conditions. On the overall, the Group remains uncertain on the continued impact of the weak global economy, and expect a satisfactory performance. US105¢/ share dividend declared, bring FY12 total dividend to US123¢/ share. Group trades at 15x P/E, 3.3x P/B;