4 Things That Investors Might Have Missed About Jardine Cycle & Carriage Ltd
Jardine Cycle & Carriage Ltd (SGX: C07) or Jardine C&C is a conglomerate with a diverse set of businesses that include automotive, financial services, heavy equipment and mining, agribusiness, information technology, infrastructure, logistics and others.
I first thought that the company was complex to understand. Many investors might share the same impression, especially with a web of businesses scattered across different regions.
As such, many might have missed out some simple, yet important information about the group. Here are four of those that you might have missed out on.
Source: Jardine C&C 2016 Annual Report
Though listed in Singapore, Jardine C&C has presence mainly in six countries.
Out of these five countries, Indonesia contributed the most to underlying profitability in 2016. Singapore, on the other hand, contributed less than 4% of 2016 underlying profitability.
Do you know that the biggest shareholder of Jardine C&C is another Jardine company? In fact, according to 2016 annual report, Jardine Strategic Holdings Limited (SGX: J37) owned 75% of Jardine C&C.
In other words, investors of Jardine C&C must be comfortable with the long term strategic direction of Jardine Strategic before investing in Jardine C&C.
Another thing that investors should know about Jardine C&C is that it owns 50.1% of its major subsidiary – Astra International. In other words, Jardine C&C has “only” 50.1% share in the economic interest of Astra International.
Astra International, in turn, is listed on the Indonesia Stock Exchange.
Income investors would like to know about a company’s dividend history before investing in it.
And if you are an income investors thinking about investing in Jardine C&C, one good news is that the company has been paying dividends for a very long time, even before 2000.