Jardine Matheson/ Jardine Strategic

Jardine Matheson/ Jardine Strategic: Credit Suisse notes that underlying earnings from 1 Jul to 5 Nov 2013 were flat vs same period in 2012, in line with management and market expectations. Performance was mixed across businesses, where Hongkong Land and Mandarin Oriental remains strong but was offset by weakness in Astra and Dairy Farm. Astra’s 3Q13 profit was dragged down by divisions outside auto and financial services sector, while weaker rupiah further brought down contribution on consolidation. CS highlights vacancy rate for HongKong Land’s Central office portfolio stayed largely the same at 5.9% vs 5.6% as at 30 June. However, management mentions the possibility of a commitment of a new tenant. Dairy Farm had higher sales growth but cost pressures in Singapore and Malaysia brought earnings down y/y. Both stocks are trading in line with historic P/B values, and CS maintains Neutral for both JM and JS, but reduces target price on new FX assumptions: Jardine Matheson TP: US$63 (from US$67) Jardine Strategic TP: US$37 (from US$39)