Jardine Strategic

Jardine Strategic: FY13 results were on the higher end of estimates. Net profit fell 7% to US$1.7b, although revenue inched 2% higher to US$61.4b. Hong Kong Land, Dairy Farm, and Jardine Matheson led the revenue increase, which was offset by Astra. HK Land (+44.2%) revenue was buoyed by its commercial and residential activities, while Dairy Farm (+7.7%) saw sales growth across all divisions. Astra (-3.7%) was weighed by currency translation on weakening rupiah, but otherwise delivered strong revenue in rupiah terms. Going forward, management expects “sound overall performance” in FY14 despite a continuation of uneven market conditions, with a reduced contribution from Hongkong Land’s residential completions and weaker IDR. The stock is currently trading at P/B of 0.67x, based on market value NAV. Final DPS of US18¢ (total DPS of US25.5¢,+6% y/y) CS maintains Neutral with TP $37.00