Jardine Matheson Holdings Limited

For the first half of 2023, total revenue was $18.3 billion, in line with the same period last year. Underlying net profit was $823 million, up 10% from 2022 and 11% above pre-COVID 2019 levels, and underlying EPS was $2.84, up 9% year over year. At constant exchange rates, underlying earnings growth would have been 14% and EPS growth 13%, reflecting foreign exchange headwinds. The board declared an interim dividend of $0.60 per share, up 9%. Outside underlying earnings, the group recorded a net nontrading loss of $257 million, including a $482 million unrealized loss on investment property revaluations partly offset by a $54 million increase in the fair value of other investments. Net borrowings excluding Financial Services fell $600 million to $6.9 billion and gearing declined from 13% to 12%. Looking ahead, management said it expects Jardine’s growth to continue in the remainder of the year and emphasized a strong balance sheet and around $13 billion of undrawn committed borrowing facilities.

Graham Baker’s strategic message centered on portfolio reshaping, digital and operational upgrades, and sustainability. He highlighted Astra’s moves into nickel as part of a broader shift away from coal, ongoing capital recycling from noncore assets, and investments in innovation across businesses such as Hactl, DFI, Astra, and Mandarin Oriental. His tone was constructive and forward-looking, emphasizing long-term growth in Asia and a stronger contribution to energy transition and sustainability.

On the financial side, Baker said the group delivered a strong first half with $823 million of underlying net profit, $2.84 of underlying EPS, and $18.3 billion of revenue. He noted foreign exchange headwinds, but said constant-currency underlying earnings grew 14% and EPS grew 13%. He also detailed a $257 million nontrading loss, lower net borrowings of $6.9 billion excluding Financial Services, gearing at 12%, and around $13 billion of undrawn committed borrowing facilities. Capital allocation remained disciplined: the group has invested nearly $7 billion in privatizations and share buybacks over the last 4 to 5 years, while still keeping flexibility for new investments and maintaining investment-grade credit metrics.

Analysts pressed management on how the group is positioned for the EV transition in China and Indonesia, and Baker said Zhongsheng is pivoting toward repair and service centers while Astra is working with Toyota and Honda as Indonesia’s EV transition will likely take several years. Questions also focused on capital allocation, gearing, and whether management should target lower leverage; Baker said there is no fixed gearing target, but the group prefers a prudent balance sheet and could get back to single-digit gearing depending on investment opportunities. There was also scrutiny of Hongkong Land’s weak share price; management attributed it mainly to negative China/Hong Kong sentiment rather than a collapse in operating performance, and said it continues to see value in the business. On digital strategy, Baker said the Hillhouse relationship remains strong and the group still sees opportunities in digital businesses, especially adjacent to existing operations.