Jardine Matheson (JM)/ Jardine Strategic (JS)

Jardine Matheson (JM)/ Jardine Strategic (JS): Group’s subsidiary PT Toyota Astra Motor has announced that the govt has signed the regulation on low cost green car. Astra expects to commercially sell the LCGC in Jul 2013 under the brand of Toyota Agya and Daihatsu Ayla. CS have factored this in into its forecast for Astra, and expect Astra to sell around 90,000 units of LCGC in 2H13. FY13E 4W Astra volume is estimated to reach 740,582 units, +22% y/y. CS remains positive on the fundamentals of the group, with JM and JS trading at a discount to NAV of 19% and 29%, respectively, vs their historical average of 26% and 36%. Hence sees limited further upside from narrowing in discount to NAV. CS prefer direct exposure to subsidiaries Astra (OUTPERFORM, TP Rp9,000) and HongKong Land (OUTPERFORM, TP US$8.65), where CS see potential upside of above 20%. Jardine Cycle and Carriage is currently trading at 89% of the market value of its holding of Astra, vs the historical average of 92%.