Jardine Matheson

Price target: CGS-CIMB “add” US$48.61

Lower than expected earnings but balance sheet remains strong
No thanks to a US$1.2 billion ($1.62 billion) cut in the fair value of its investment properties, Jardine Matheson has reported losses of US$775 million for 1HFY2020. Its underlying net profit of US$373 million for the same period has fallen short too. Yet, CGS- CIMB analyst William Tng has upgraded the Hong Kong-based conglomerate to “add” from “hold”, on optimism that its strong balance sheet can help see it through the uncertainties arising from Covid-19 and that earnings uncertainty has already been priced in, writes Tng in his July 31 report.

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