Jardine Cycle & Carriage: Business Operations and Valuation Insights

Jardine Cycle & Carriage is a Singaporean multinational conglomerate with a diverse range of businesses. Founded in 1853, it has a rich history of growth and expansion.

The company operates in various sectors, including automotive, engineering, and financial services. Its diverse portfolio allows it to adapt to changing market conditions.

Jardine Cycle & Carriage has a significant presence in Southeast Asia, with operations in countries such as Indonesia, Malaysia, and Thailand. Its extensive network enables it to serve a large customer base.

The company's valuation is influenced by its strong financial performance and strategic partnerships.

Jardine Cycle & Carriage has a rich history that spans over a century. It was founded in 1899 by the Chua brothers as Federal Stores, a sundry store in Kuala Lumpur.

The company's first location was near the present-day Pasar Seni station, and it was later relocated to Market Square in 1904, where the building still exists today. The coordinates of this historic building are 3°8′49″N100°41′47″E.

In 1926, the company was incorporated and relocated to the then-Strait Settlement of Singapore. This marked a significant milestone in the company's growth and expansion.

By 1951, the company had secured the distributorship for Mercedes-Benz, a prestigious brand that would become a cornerstone of the company's business. Other notable brands were also added to the company's portfolio over the years.

Here's a brief overview of the brands that were part of the company's portfolio at various points in its history:

The company's commitment to innovation and growth led it to become one of the early adopters of local car assembly in the Malayan Federation, starting in 1963.

Jardine Cycle & Carriage has shown significant improvements in its financial results over the last three years. In 2015, the company recorded its weakest financial results due to lower sales and profits from Permata Bank.

The company's financials have been gradually improving since then. In 2016, Astra achieved improvements in most of its businesses, except for Permata Bank, which incurred substantial losses.

JCC's financials took a significant turn for the better in 2017, with Permata Bank returning to profitability and most of its businesses sustaining improved performances. This contributed positively to JCC, which recorded S$ 1.12 billion in earnings that year.

JCC is currently trading at S$ 34.43 a share, with a P/E Ratio of 12.21 based on its 2017 earnings per share of S$ 2.82. Its P/B Ratio is 1.58, based on its net assets per share of S$ 21.86 as at 31 March 2018.

JCC's dividend yield is expected to be 3.43% if it maintains its dividend payout of S$ 1.18 per share.

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Let's take a closer look at the stock symbol of a company. The ticker symbol for this company is SGX: C07.

This ticker symbol is used to uniquely identify the company on the stock exchange. The market capitalization of the company on June 2, 2018, was a significant S$ 13.6 billion.

The share price of the company on the same day was S$ 34.43.

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JCC's business is a diverse and complex entity, with various income streams contributing to its overall performance. The company's main income contributor is Astra, a leading Indonesia-based conglomerate with a 50.1% stake in the company.

Astra has a diverse business interest in automotive, financial services, mining, and construction equipment, as well as palm oil production. In 2017, Astra contributed US$ 640.7 million in underlying profits to JCC.

JCC's motor portfolio is another significant contributor to its income. The company has a strong presence in the automotive market across Southeast Asia, with a 100% stake in Cycle & Carriage Singapore, a 59.1% stake in Cycle & Carriage Bintang Berhad, and a 60.0% stake in Cycle & Carriage Myanmar.

Here's a breakdown of JCC's business interests:

JCC's business interests in other industries are relatively small compared to Astra and its motor portfolio. However, the company has begun to diversify into new areas, with stakes in companies such as Siam City Cement, Refrigeration Electrical Engineering Corporation, and Vinamilk.

JCC is trading at S$ 34.43 a share. This is a crucial piece of information for any investor considering purchasing shares.

In 2017, JCC had recorded S$ 2.82 in earnings per share (EPS), which is a key metric for evaluating a company's profitability. This translates to a current P/E Ratio of 12.21.

JCC's net assets per share stood at S$ 21.86 as at 31 March 2018, based on an exchange rate of USD 1:SGD 1.32. This is a significant indicator of the company's financial health.

Its current P/B Ratio is 1.58, which is a relatively low and manageable level. This suggests that the company's stock price is reasonable compared to its book value.

JCC has paid out S$ 1.18 in dividends per share (DPS) in 2017. If the company can maintain this dividend payout, the expected dividend yield would work out to be 3.43%. This is a compelling reason for investors to consider purchasing shares.

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Jardine Cycle & Carriage has a significant partnership with used car marketplace Carro, with a tie-up valued at over $80 million.

Jardine C&C holds the dealership rights for multiple brands, including Mercedes-Benz, Mitsubishi Motors, and Kia, in Singapore.

Carro's CEO Aaron Tan will join the board of Republic Auto, a subsidiary of Jardine C&C, while Jardine C&C's managing director Wilfrid Foo will join Carro's board.

Jardine Strategic Holdings Ltd is the largest shareholder of Jardine Cycle & Carriage Ltd, holding 75% of the company's shareholdings as of March 9, 2018.

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Jardine Cycle & Carriage has entered into a strategic partnership with used car marketplace Carro, valued at over $80 million.

The partnership will enable Jardine C&C and Carro to explore opportunities in the used car and after-sales businesses. They'll form an after-sales joint venture to roll out a multi-brand after-market workshop business.

Jardine C&C will take a stake in Carro, while Carro will acquire a stake of equal value in Jardine C&C subsidiary Republic Auto. Republic Auto is one of the largest used car dealers in Singapore.

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Wilfrid Foo, Jardine C&C's managing director for direct motor interests, will join Carro's board. Aaron Tan, Carro's CEO, will join the board of Republic Auto.

The partnership will leverage Carro's tech capabilities to mirror and integrate the value chain from online to offline. Jardine C&C will provide the relevant experience to support the joint venture.

Through the tie-up, Carro will gain immediate access to an expanded range and supply of high-quality used cars. Jardine C&C holds the dealership rights for multiple brands, including Mercedes-Benz, Mitsubishi Motors, and Kia, in Singapore.

Jardine C&C shares closed up 14 cents, or 0.41 per cent, at $34.10 on Friday after the announcement of the partnership.

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Jardine Strategic Holdings Ltd is the largest shareholder of Jardine Cycle & Carriage Ltd, holding 75.00% of the company's shareholdings as of 9 March 2018.

This significant stake gives Jardine Strategic Holdings Ltd considerable influence over the operations and decisions of Jardine Cycle & Carriage Ltd.

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