Jardine Cycle & Carriage (Jardine C&C), another Singapore-listed unit of the Jardine family, in contrast, has gained less than a third and from the perspective of DBS Group Research, this counter deserves some attention from investors too, as it follows Hongkong Land and DFI in conducting a thorough review by 1HFY2026 of its broader direction ahead, with five-year total shareholder return as the key performance metric. “We see this as a meaningful re-rating catalyst, potentially translating into sustained share buybacks, higher dividend payouts and selective asset recycling,” state DBS analysts Elizabelle Pang and Sachin Mittal, who are initiating coverage on this counter with a “buy” call and $38.50 target price.
The Jardine family, with interests spanning parts of the Marina Bay Financial Centre here in Singapore, Ikea stores in Taiwan, and 7-Eleven outlets in Hong Kong, is a traditional conglomerate. Jardine C&C, too, is a conglomerate in its own right. It is best described as the holding company for Jardine’s Southeast Asian businesses. Its crown jewel is its 51% stake in Jakarta-listed Astra International, whose business interests span automotive manufacturing, components, and financial services.
Indonesia accounted for 87% of Jardine C&C’s earnings in FY2024. While this market is seen as continuing to grow, Pang and Mittal believe that Vietnam, which contributed 9% to the bottom line, offers not just diversification from Indonesia but will also be the “medium-term growth kicker”.
Again, instead of one large stake, Jardine C&C has its fingers in numerous pies. It holds just over a quarter of Troung Hai Group Corp, better known as Thaco, an unlisted company that, besides its leading position in Vietnam’s auto market, is also active in manufacturing, distribution, agriculture, and logistics. Jardine C&C also holds more than 40% in Refrigeration Electrical Engineering Corp (REE), which, unlike what the name suggests, is now better known as a listed renewables and infrastructure player.
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According to Pang and Mittal, given Vietnam’s low car ownership, Thaco could achieve a 16% CAGR in private vehicle sales through 2030, outpacing many other markets. The company, relative to local competitors, commands a premium positioning and not just shares, given its portfolio of brands such as Kia, BMW, Mazda, Peugeot, Foton and Fuso.
Furthermore, rising export exposure, amid resilient margins, could also support earnings growth, state Pang and Mittal, noting that Jardine C&C’s share of Thaco’s earnings was already up 10% y-o-y in the most recent 1HFY2025 ended June 30, 2025.
In conjunction, Jardine C&C has become more active in doing deals in Vietnam, boosting its presence in priority areas. Just last December, the company sold a 4.6% stake in Vinamilk to fellow shareholder Fraser & Neave for $295 million.
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According to the analysts, this move is in line with Jardine C&C’s bid to recycle capital and unlock value. Proceeds, of course, will be useful as Jardine C&C seeks out majority stakes and bolt-on acquisitions alongside partners Thaco and REE. They suggest that Jardine C&C could divest its remaining 6.02% stake in Vinamilk by the end of this quarter, thereby helping raise a larger war chest. “We see M&A execution and capital recycling — with clearer visibility expected by the end of 1HFY2026 — as key re-rating catalysts for JC&C,” state Pang and Mittal.
And of course, Astra, the key asset of Jardine C&C, is no slouch either. The DBS analysts have pencilled in a FY2026 earnings estimate for Astra that is 4% above consensus. They expect the company to report stronger FY2026 earnings from vehicle sales, driven by resilient demand for two-wheel vehicles and the launch of new hybrid four-wheel models. The DBS analysts acknowledge the weaker share price in recent weeks but attribute it to “exogenous” factors, namely MSCI’s caution regarding Indonesia as a market.
Conceptually, Jardine C&C should be viewed in a more positive light, given where it is listed. “Although Jardine C&C remains closely correlated with Astra, its listing on Singapore Exchange and broader regional portfolio may reduce sensitivity to Indonesia MSCI-related volatility, supporting a cleaner re-rating path over time,” state the DBS analysts.
