10-11-2013, 10:33 AM
I could not find any thread on JMH400 so thought I put up one for discussion.
Here's a brief intro. Frankly hardly a single a day can pass without anyone not patronising their stores or services.
The Jardine Matheson Group is an Asian conglomerate with operations across a wide range of sectors and countries, and a history stretching back nearly 200 years. The Group has two listed holding companies: Jardine Matheson Holdings (JMH) (OTC:JARLF, ADR OTC:JMHLY) and Jardine Strategic Holdings (JSH) (OTC:JDSHF, ADR OTC:JSHLY). Both are good values, trading at substantial discounts to their underlying value, although in my view JMH is the one to buy.
Corporate structure
The Group has a complicated corporate structure with numerous listed entities. JMH is the main holding company. Below JMH is a second listed holding company, JSH, in which JMH has a shareholding of around 83%, with a free float of 17%. Both JMH and JSH are incorporated in Bermuda, but remain headquartered in Hong Kong. The companies are listed in Singapore (J36.SI for JMH, J37.SI for JSH), where the majority of trading occurs. The ADRs and ordinary shares and are traded on an OTC basis in the US; the ADRs appear to be much more liquid.
The majority of the Group's assets are held through JSH, including the main, listed subsidiaries: Dairy Farm which runs Cold Storage, Giant, Jason’s Market Place, and Shop’n’Save. , Hongkong Land (HKL), Jardine Cycle & Carriage (JC&C) and Mandarin Oriental. JMH holds various businesses directly: Jardine Pacific and Jardine Motors, both wholly owned, and Jardine Lloyd Thompson (JLT), a listed associate. The main complication is that JSH has a controlling cross-shareholding in JMH of 56%.
To summarise, in my view:
1) this is a rather recession proof counter, with thoroughly diversified businesses thatcovers food, cars and property.
2) Sum of parts is likely more than its whole value, one website on this
http://www.gurufocus.com/news/175836/jar...ry-contest placed this value at $72
3) increasing dividends over the part decade, a clear sign that the company is doing well http://gurufocus.com/images/useruploads/182694177.jpg
4) this counter is a one possible candidate to do dividend compoundation and magnification of effect over the next 1-2decades, that is, if this sort of growth is sustained.
4) This stock seems to be in a correction after hitting a high of US$70 some months ago and it currently trading at US$52
5) This stock is traded in lots of 400 shares, so the smallest amount is around S$27,000.
Any one vested or got views on this counter?
(not vested but looking at it)
Here's a brief intro. Frankly hardly a single a day can pass without anyone not patronising their stores or services.
The Jardine Matheson Group is an Asian conglomerate with operations across a wide range of sectors and countries, and a history stretching back nearly 200 years. The Group has two listed holding companies: Jardine Matheson Holdings (JMH) (OTC:JARLF, ADR OTC:JMHLY) and Jardine Strategic Holdings (JSH) (OTC:JDSHF, ADR OTC:JSHLY). Both are good values, trading at substantial discounts to their underlying value, although in my view JMH is the one to buy.
Corporate structure
The Group has a complicated corporate structure with numerous listed entities. JMH is the main holding company. Below JMH is a second listed holding company, JSH, in which JMH has a shareholding of around 83%, with a free float of 17%. Both JMH and JSH are incorporated in Bermuda, but remain headquartered in Hong Kong. The companies are listed in Singapore (J36.SI for JMH, J37.SI for JSH), where the majority of trading occurs. The ADRs and ordinary shares and are traded on an OTC basis in the US; the ADRs appear to be much more liquid.
The majority of the Group's assets are held through JSH, including the main, listed subsidiaries: Dairy Farm which runs Cold Storage, Giant, Jason’s Market Place, and Shop’n’Save. , Hongkong Land (HKL), Jardine Cycle & Carriage (JC&C) and Mandarin Oriental. JMH holds various businesses directly: Jardine Pacific and Jardine Motors, both wholly owned, and Jardine Lloyd Thompson (JLT), a listed associate. The main complication is that JSH has a controlling cross-shareholding in JMH of 56%.
To summarise, in my view:
1) this is a rather recession proof counter, with thoroughly diversified businesses thatcovers food, cars and property.
2) Sum of parts is likely more than its whole value, one website on this
http://www.gurufocus.com/news/175836/jar...ry-contest placed this value at $72
3) increasing dividends over the part decade, a clear sign that the company is doing well http://gurufocus.com/images/useruploads/182694177.jpg
4) this counter is a one possible candidate to do dividend compoundation and magnification of effect over the next 1-2decades, that is, if this sort of growth is sustained.
4) This stock seems to be in a correction after hitting a high of US$70 some months ago and it currently trading at US$52
5) This stock is traded in lots of 400 shares, so the smallest amount is around S$27,000.
Any one vested or got views on this counter?
(not vested but looking at it)