The analysts attribute the decline to lower contribution from Zhongsheng, which was impacted by intense market competition from domestically produced electric vehicle penetration in China, headwinds from lower commodity prices at Astra which saw profit drop 6% y-o-y, as well as from other businesses amid challenging conditions.
Citi Research analysts George Choi and Ryan Cheung are upgrading their “neutral” call on Hong Kong-based conglomerate Jardine Matheson Holdings (SGX:J36
) to “buy” at an unchanged target price of US$40.50 ($53.78) following the group’s 1HFY2024 net profit of US$550 million, which came in 33% lower y-o-y.
Choi and Cheung note in their report that without the Hongkong Land-related impairment charge of US$255 million, net profit during the period was down 14% y-o-y, compared to the pair’s FY2023 earnings growth forecast of 5% y-o-y.
