While these commitments reflect “stronger capital discipline and shareholder alignment”, the stock continues to trade at a holding company discount of 27%, in line with historical averages.
DBS Group Research analysts Elizabelle Pang and Sachin Mittal have initiated a “buy” call on Jardine Matheson as they believe the group’s strategic transformation has not been “fully priced in”.
“We have turned more constructive following Jardine Matheson's Investor Day, where management committed to ≥9% annualised five-year TSR (total shareholder return), 5% annual dividend growth, US$4 billion of capital recycling by 2030, and a US$500 million share buyback through 2027,” write Pang and Mittal in their July 13 report.
