Jardine Cycle & Carriage

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(21-04-2022, 03:30 PM)donmihaihai Wrote: At JC&C holding level, it has way more cash flow for servicing the loan interest. Cashflow is mainly use for 1) interest payment, 2) dividend payment & 3) investment( usually adding on to current investees). #2 & #3 are adjustable, and JC&C has been adjusting over the years. Next while JCC holding level cashflow(dividend received) is not sustainable at certain level, it is in my view sustainable because the underlying investees are all quality businesses. Ie cash will keep flowing in. So, while there is some restriction in the allocation of capital, their hands are not tied. Forget about JC&C being forced to do a right.

As Jardine SE Asia investing arm, JC&C main job is to buy a sizable interest in promising companies. Eg, their current holdings (1 Thai, 2 Indo and 3 Vie) so in my view, JC&C need to raise capital because it does not have extra capital for sizeable investment. It is a question of not if but when, and this question will be partly answered by JMH(JMH must be capital ready) since it owns 75% of JC&C. The other part is unknown, what are JC&C targets.

As for the debt being refinanced, you can actually see it in the company level B/S and notes.

We are finally seeing some reduction of the 1.5bil debt at company level.

The details were not detailed in FY22 results and slides. But it was elaborated in the company's analyst briefing - Basically ~600+ million of debt is now at current liabilities and will be paid off with the sales/leaseback of C&C Spore properties + retaining some of the Astra's "enhanced" dividend payout.

FY22 analyst briefing:
https://media.idigitalcontents.com/media...tation.mp4
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I have to admit that I thought Carro would go belly up in 2023-2024. But with the admission of JCC's money and complimentary capabilities, they have demonstrated me wrong. They also probably have more legs to run. It seems like JCC is trying replicate "Astra Automobile" full suite of services in Spore/Msia.

Jardine C&C and Carro enter strategic partnership for used cars and aftersales

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

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

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

https://www.businesstimes.com.sg/compani...aftersales
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Been JCC's principal brand and mfg partner in Indonesia, Toyota's belated entry into EV is kinda "nerve-recking" for JCC OPMIs. This is in view that Indonesia is moving towards building its supply chain for EV battery within the country, paired with the opportunity of the ASEAN FTZ.

But since James Dyson has said that there is no first mover advantage for EV mfg (when he abandoned doing it in Spore), we can probably hope for the Japs to gather their mojo.

In EV battle, Toyota bets on new technology and old-school thinking

Under new CEO Koji Sato, Toyota in June announced an ambitious plan to ramp up battery EVs, a big shift after years of criticism that the maker of the industry-leading hybrid Prius was slow to embrace fully electric technology.

https://www.businesstimes.com.sg/compani...technology.
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