Opinions
David Driscoll
Jardine Matheson
JMHLY-OTC
PAST TOP PICK
Dec 27, 2024
Stock price when the opinion was issued
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Are exposed only 25% to China; rather, Indonesia is their greatest exposure where they collet revenues in the Indonesia rupee, but must show profits in US dollars. In the past year, the rupee has fallen then come back, but this isn't reflected in their earnings yet. It will in the next report. If interest rates fall, then the USD will and Jardine's profit will rise. The dividend grows 6-10% yearly (and could rise higher with a weaker USD), paying 5.5% now. It's like a bond proxy. Lots of room to buy companies.
(Analysts’ price target is $54.61)Most revenues come from Indonesia, so the conversion from rupees to US dollars limits profits. 25% of revenues are in China, mostly commercial real estate. Other revenues are also in southeast Asia, also hurt by the strong USD. The dividend is safe and growing at 6.5%.
Emerging markets are suffering as the USD has gone up. China announced stimulus package in September, and asked this company to get the Hong Kong economy rolling again. As a result, stock popped. Earnings not as bad as expected.
Still getting paid to wait, almost like a bond at 6%, and dividend grows every year. Still buying.