Jardine Math/ Strategic

Jardine Math/ Strategic: Due to lower rupiah assumptions and macro concerns in Indonesia, CLSA lower its Jardine C&C and Dairy Farm numbers. These changes result in a 3.4% and 7% cut in its FY13 and FY14 earnings respectively. A soft 2H13 guidance has weighed on the Jardine share price over the last 3 months, which has corrected almost 25%. However, structurally the longer term growth story in Asean remains, particularly the Indonesian automotive market. Despite the softness in Indonesia, the Hong Kong market continues to perform well with growth across all 3 consolidated businesses and this remains the dominant piece of the business. Jardine Math and Jardine Strategic are trading at a 30% and 35% discount to current NAV respectively. CLSA has a BUY on Jardine Math with TP of US$68 (from US$71) and Jardine Strategic as a BUY with TP of US$39 (from US$41).