Jardine Matheson Holdings Limited

For the first half, total revenue was $18.3 billion, in line with the same period last year. Underlying net profit was $823 million, up 10% year over year and 11% above pre-COVID 2019 levels; underlying EPS was $2.84, up 9%; and the interim dividend was $0.60 per share, up 9%. At constant exchange rates, underlying earnings growth would have been 14% and underlying EPS growth 13%. Net borrowings excluding Financial Services fell $600 million to $6.9 billion, and gearing declined from 13% to 12%. For the full-year outlook, management expects growth to continue in the remainder of the year, despite geopolitical and economic uncertainty.

Graham Baker emphasized portfolio evolution toward sustainability, digital capability, and operational improvement. He highlighted Astra’s moves into nickel and the group’s continued push to release capital from non-core assets, simplify the portfolio, and build new growth drivers in Asia. His tone was constructive and confident, stressing that the group’s businesses are cash-generative and positioned for long-term growth.

Graham Baker said the group’s first-half earnings growth was helped by a strong contribution from Astra and recoveries at DFI and Mandarin Oriental, while foreign exchange headwinds, especially from the stronger U.S. dollar against the Indonesian rupiah and RMB, held back reported growth. He noted a $257 million net nontrading loss, including a $482 million unrealized loss on investment property revaluations, partly offset by a $54 million gain on other investments. He also said net borrowings excluding Financial Services fell to $6.9 billion, cash flow from operations improved, investing activities produced a $14 million inflow, and the group still has around $13 billion of undrawn committed borrowing facilities.

Analysts focused on the motors transition, capital allocation, gearing, and Hongkong Land’s share price. Management said Zhongsheng and Astra are pivoting toward EV-related services and partnerships, but the pace of transition differs by market; in Indonesia, Astra sees several years before a broader EV shift due to price and charging infrastructure. On capital allocation, Baker said the group has invested nearly $7 billion in privatizations and buybacks over 4-5 years and now is prioritizing new growth drivers while keeping balance-sheet discipline; he also said there is no fixed gearing target, though single-digit gearing remains possible depending on opportunities. On Hongkong Land, he argued the share price weakness reflects broad China/Hong Kong investor sentiment rather than the business’s operational performance.