JC&C

JC&C: JPM initiates at Neutral with TP $53.00. Sees JC&C as an attractive option for investors looking for exposure to Astra , notes its 22% P/E discount to 50.1%-owned Astra vs the five-year average of 13%. Says this is an opportunity, expects the discount to narrow to 8%-10%, driving JC&C outperformance . Notes the weaker rupiah environment supportive of JC&C delivering better USD returns than Astra in the near term. Longer term, potential buybacks at JC&C mean that EPS growth (30.6% p.a. over the last five years) should outpace Astra (28.5%). JPMorgan says its muted outlooks on Astra, 80%-owned Astra Agro and 60%-owned United Tractors keep it from giving JC&C an Overweight rating. Notes risks from JC&C's lower liquidity, as it's 71.27%-owned by Jardine Strategic , while a declining free float may support stock performance,it could also limit investors' ability to trade JC&C. Also notes the Singapore market's car-sales prospects offer relatively limited growth. JC&C is up 1.0% at $49.10