On Aug 2, Jardine Cycle & Carriage (Jardine C& C) : C07 -2.16% group managing director Benjamin Birks acquired 19,000 shares at S$33.90 per share. This increased his direct interest in the South-east Asia investment holding company of the Jardine Matheson Group from 25,000 shares to 44,000 shares. This represents a 0.01 per cent direct interest in the company. His previous 25,000 shares were acquired on Mar 19, 2021, at S$22.77 per share.

 

Birks was appointed group MD in October 2019, and leads the long-term portfolio strategy of the group. This includes having direct oversight over its sustainability strategy. He joined Jardine Matheson in 2000 and has held senior positions within the retail, automotive, business outsourcing and IT businesses of Jardines. Prior to his current appointment, he was the chief executive of Jardine International Motors, Zung Fu Group and Jardine Pacific between 2012 to 2019. Birks is a commissioner of Astra and United Tractors, and a director of Thaco. He is also the chairman of Mindset, a registered charity of Jardine Matheson in Singapore, and was previously a director of Siam City Cement and Refrigeration Electrical Engineering Corporation.

 

On Jul 28, Jardine C& C reported its H1 FY23 results, which saw higher contributions from its Astra and Direct Motor Interests. After accounting for non-trading items, which mainly comprised gains from the sale and leaseback arrangement in respect of Jardine C& C Singapore&rsquo s properties, and unrealised amounts arising from the revaluation of the group&rsquo s equity investments, the group&rsquo s H1 FY23 profit attributable to shareholders was US$648 million, compared to US$487 million in H1 FY22.

 

At the 2023 annual general meeting on Apr 28, Jardine C& C was asked about its positioning with regard to the vehicle electrification trend. Birks highlighted that Jardine C& C was focused on the transition to electric vehicles (EVs). He added that the Indonesian market is still in the early days of the EV journey, and Toyota is committed and working closely with Astra to deliver the right product. In Singapore, Birks maintained that Mercedes-Benz is committed to purely EVs for the luxury segment, which presents an opportunity. Jardine C& C maintains its interests are closely aligned with the dynamic development of the region, where it maintains market-leading businesses in six countries across eight sectors, aligned to its investment themes of urbanisation and the emerging consumer class.

 

Jardine Cycle & Carriage' s H1 FY23 profit attributable to shareholders was US$648 million, compared to US$487 million in H1 FY22. 

 

FOR the five trading sessions that spanned Jul 28 to Aug 3, the Straits Times Index (STI) declined 1 per cent while the Hang Seng Index declined 0.4 per cent and the FTSE Bursa Malaysia KLCI declined 0.6 per cent.

 

Institutions were net sellers of Singapore stocks over the five sessions with S$73 million of net outflow. Stocks that booked the highest net institutional outflow over the five sessions included Singapore Airlines : C6L +0.28%, Frasers Logistics & Commercial Trust : BUOU 0%, Genting Singapore : G13 -0.54%, Jardine Matheson : J36 -1.28%, CapitaLand Investment : 9CI -0.6%, Venture Corporation : V03 -0.14%, Mapletree Pan Asia Commercial Trust : N2IU -0.62%, Suntec Reit : T82U -0.79% and Sheng Siong Group : OV8 +0.63%. Meanwhile United Overseas Bank : U11 -3.42%, Oversea-Chinese Banking Corporation : O39 -0.77%, Yangzijiang Shipbuilding : BS6 +1.94%, iFast Corporation : AIY +2.11%, ComfortDelGro Corporation : C52 -0.79%, Thai Beverage : Y92 -0.83%, DBS Group Holdings : D05 +1.45%, CapitaLand Integrated Commercial Trust : C38U -1%, Keppel Corporation : BN4 -0.69% and Seatrium : S51 +0.75% booked the highest net institutional inflow over the five sessions.

 

On the new Thailand blue-chip Singapore Depository Receipt (SDR) front, all three SDRs, comprising Airports of Thailand (AOT), CP All and PTT Exploration & Production (PTTEP) attracted net buying interest from individual investors for the second consecutive month in July. The largest inflows for the month were booked by CP All SDR while PTTEP generated the most price gains of the trio, on the back of the crude oil price gains. PTTEP reported on Jul 31 that its Q2 FY23 profit increased 2.1 per cent from Q2 FY22, with the company announcing an interim dividend of 4.25 baht payable in August 2023. PTTEP SDR holders on SGX : S68 +1.79% will be entitled to the distribution and will receive the proceeds in Singapore dollars. CP All and AOT are slated to announce earnings on Aug 10 and Aug 11, respectively.

 

Share buybacks

There were four primary-listed companies conducting share buybacks over the five trading sessions through to Aug 3 with a total consideration of S$11.4 million.

 

JARDINE Cycle & Carriage : C07 +1.19% posted a net profit of US$648 million for the first half ended Jun 30, 2023, a 33 per cent increase from a year ago, following higher contributions from Astra and the direct motor interests business segment.

 

The group&rsquo s revenue rose 9 per cent to US$11.7 billion, from US$10.7 billion the year before.

 

Earnings per share was US$1.64, increasing from US$1.23 a year ago.

 

The board has recommended an interim dividend of 28 US cents per share, unchanged from H1 2022, to be paid out on Oct 6.

 

Jardine C& C said Astra&rsquo s automotive segment recorded higher sales volumes. Net income for the segment rose 33 per cent to US$379 million.

 

Car sales were 7 per cent higher, while sales of Astra Honda motorcycles were 56 per cent higher as the unit faced production constraints the previous year, caused by semiconductor supply issues.

 

Net income from Astra&rsquo s financial services business rose 32 per cent to US$255 million, on higher contributions from the consumer finance business.

 

Net income from the heavy equipment, mining, construction and energy segment increased 11 per cent to US$459 million. During the six months, heavy equipment sales and mining contracting continued to benefit from higher coal prices.

 

Jardine C& C&rsquo s direct motor interests contributed US$35 million in profit, up 22 per cent. Cycle & Carriage Singapore had lower car sales volumes due to a tightened COE (Certificate of Entitlement) cycle.

 

But Tunas Ridean in Indonesia contributed 30 per cent more profit than a year ago, on better volumes across its automotive, financial services and leasing businesses. Cycle & Carriage Bintang in Malaysia had higher new car sales volumes.

 

Truong Hai Group Corporation in Vietnam, however, saw profit contribution plunge 72 per cent. Automotive profits were significantly reduced, as the Vietnam market was impacted by weaker economic and consumer sentiment, and greater competitive pressure.

 

Profit from Jardine C& C&rsquo s other strategic interests was down 15 per cent to US$29 million, dragged mainly by Siam City Cement, which continued to be impacted by high energy costs.

 

The group said economic uncertainties remain, but expects progress to continue into the second half of the year.

MAINBOARD-LISTED Jardine Cycle & Carriage : C07 +0.41% (C& C) and used-car tech platform Carro announced a strategic partnership worth &ldquo over US$60 million&rdquo on Friday (Jun 16).

 

Under the partnership, Carro will acquire a stake in Jardine&rsquo s used-car subsidiary, Republic Auto, while Jardine C& C will acquire a stake of equal value in Carro.

 

The tie-up aims to play on the respective strengths of each entity, with Jardine C& C as an established automotive player with extensive infrastructure and expertise, and Carro as a technology-driven company with multi-platform experience. It is the first of its kind for used cars and aftersales between an established automotive group and a technology platform in the region. 

 

Jardine will appoint Wilfrid Foo, its managing director for direct motor interests, as its representative to Carro&rsquo s board. Aaron Tan, the chief executive of Carro, will represent his company on the board of Republic Auto.

 

In a joint statement, the companies said the deal is worth &ldquo over US$60 million&rdquo , but did not provide a specific figure.

 

They added that the partnership will &ldquo combine the best elements of the analogue and digital ecosystems of the used-car and aftersales space&rdquo , and help strengthen business operations for the two companies in Singapore and Malaysia.

 

Foo said the partnership will help Jardine C& C&rsquo s plans to go beyond car wholesale and retail, and into a &ldquo larger ecosystem&rdquo that includes financing, insurance and aftersales. Tan said that Carro will benefit from Jardine&rsquo s &ldquo strong networks and deep understanding of the region&rdquo to help stay ahead of its competitors.

 

Responding to queries from The Business Times, a Jardine C& C representative said the company anticipates &ldquo enhanced offerings&rdquo from the partnership, such as a wider variety of used cars and an improved &ldquo online-to-offline customer experience&rdquo , in the coming months.

 

Carro will gain access to a wider range of used cars through Republic Auto, especially in the premium or luxury segments. Jardine C& C holds the dealership rights for multiple brands, including Mercedes-Benz in both Singapore and Malaysia.

 

The trade-in of used cars when purchasing new ones is a key source of used vehicles, which are in demand in Singapore due to high Certificate of Entitlement (COE) prices.

 

A new joint venture will also be established as part of the partnership, to create a &ldquo multi-brand after-market workshop business&rdquo in Singapore and Malaysia. This will operate as a third-party workshop business, and will likely also support consumers who purchase used cars from Jardine C& C or Carro.

 

Jardine C& C is the investment holding company of the Jardine Matheson Group in South-east Asia. It owns multiple automotive dealerships in the region through its direct motor interests group. It also owns a 50.1 per cent stake in Astra, an Indonesian group with significant automotive interests.

 

Carro was established in 2015. It said it is now South-east Asia&rsquo s largest online used-car marketplace, using algorithms and artificial intelligence-enabled tech as part of its platform. Sime Darby invested S$5 million in the home-grown startup in 2021.

 

PT Danusa Tambang Nusantara (DTN), the indirect subsidiary of Jardine Cycle & Carriage C07 -0.18% , has subscribed for 857 million new ordinary shares in the capital of Australian Securities Exchange (ASX)-listed Nickel Industries for A$943 million ($850.1 million).

 

After the completion of the proposed subscription, the placement shares in Nickel Industries will represent 19.99% of Nickel Industries&rsquo total issued ordinary shares.

 

DTN is a wholly-owned subsidiary of the Indonesia Stock Exchange (IDX)-listed PT United Tractors Tbk, acting as a holding company for the latter. Its focus is to expand its business in gold and nickel commodities. PT United Tractors Tbk is a 59.5% subsidiary of IDX-listed PT Astra International Tbk. PT Astra International Tbk, in turn, is a subsidiary of Jardine Cycle & Carriage.

 

Nickel Industries is a leading integrated nickel mining and processing company. Its key assets are located either within or in close proximity to the Indonesia Morowali Industrial Park (IMIP) in Sulawesi and the Indonesia Weda Bay Industrial Park (IWIP) in Halmahera. It has an 80% stake in the Hengjaya nickel mine which is one of the largest suppliers of limonite and high-grade saprolite ore to the IMIP.

 

The company also owns and operates majority stakes in four rotating kiln electric furnace processing facilities. Three of them are located within the IMIP.

 

Based on Nickel Industries&rsquo audited consolidated financial statements for the FY2022 ended Dec 31, 2022, its profit before tax stood at US$217.0 million ($291.4 million). Its net assets as at Dec 31, 2022, stood at US$1.3 billion.

 

Based on its closing price of 87 Australian cents on June 8, Nickel Industries&rsquo market capitalisation is around A$2.62 billion.

 

The completion of the proposed subscription is subject to and conditional upon the approval by Nickel Industries&rsquo shareholders.

 

The consideration amount took into account Nickel Industries&rsquo historical earnings and growth potential. It will be fully funded by internal resources of the UT group.

 

In addition, UT, through DTN intends to take part in a direct investment into the construction of NIC&rsquo s upcoming nickel sulphate high pressure acid leaching plant (HPAL) processing facilities. This will provide UT with more opportunities to expand its portfolio into the production of nickel products that are critical to the development of batteries and electric vehicles. With this, DTN has entered into a non-binding heads of agreement (HOA) with Nickel Industries. Under the HOA, Nickel Industries may nominate DTN to acquire a 20% interest in such a project, and the HOA is conditional on the completion of the proposed share subscription.

 

On a pro forma basis, if the proposed subscription had been completed on Jan 1, 2022, the profit before tax attributable to Jardine Cycle & Carriage&rsquo s share would be US$43.4 million, or 1.3% of the group&rsquo s total net profit of US$3.23 billion.

 

JARDINE Cycle and Carriage (Jardine C& C) : C07 +1.89%on Tuesday (Feb 28) announced a net profit of US$252.3 million for the second half of 2022 ended December, down 42 per cent from earnings of US$434.3 million in the same period in 2021.

 

Revenue for the second half of the year was up 18 per cent to US$11.1 billion, due primarily to higher sales in Astra&rsquo s automotive segment, financial services, heavy equipment and mining operations and higher sales in direct motor interests.

 

The board of directors has recommended a final dividend of US$0.83 per share, up from US$0.62 per share in 2021.

 

The dividend, if approved by shareholders at the upcoming annual general meeting, will be paid out on Jun 30. 

 

The latest dividend brings Jardine Cycle and Carriage&rsquo s total payout for 2022 to US$1.11 per share, versus US$0.80 per share in 2021.

 

Things, however, looked more upbeat for the company on a full-year basis.

 

The company&rsquo s full-year profit for 2022 came in at US$739.8 million, up 12 per cent from US$660.6 million in 2021. 

 

The group said underlying profit for the year hit a record high of about US$1.1 billion, 39 per cent higher than 2021. 

 

Astra achieved a record profit as it benefited from Indonesia&rsquo s strong economic recovery and higher commodity prices, while the group&rsquo s non-Astra interests collectively also made a record contribution, mainly due to the strong performance of Truong Hai Group Corporation (Thaco) and Direct Motor Interests. 

 

Astra contributed US$913 million to the Group&rsquo s underlying profit, 39 per cent higher than the previous year, driven primarily by the recovery in the Indonesian economy and higher commodity prices.

 

Meanwhile, Thaco&rsquo s contributions rose 34 per cent to US$83 million due to a strong performance from its automotive business.

 

Looking ahead, Jardine C& C&rsquo s chairman Ben Keswick said the company expects to face challenges from uncertainties around the global economic outlook.

 

The group nonetheless said it is well-positioned to achieve sustainable growth through the opportunities in South-east Asia.