Jardine Matheson

Jardine Matheson: HSBC believes the upside potential is likely to be muted, after the stock’s strong performance over the past yr. Its discount to appraised valuation has compressed to 36% vs an avg of 43% over the apst 5 yrs. HSBC lowers its appraised valuation from US$90 to US$86 as a result of lower TP for Astra Intl and Dairy Farm, plus a weaker IDR. Its new TP is US$65 (from US$68), set at an unchg 25% discount to appraised valuation, and 14x FY14e P/E and 1.2x P/B.