Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on Jardine Strategic Holdings Limited.
Background
Founded in China in 1832, Jardine Strategic Holdings Limited holds majority stakes in Jardine Matheson (JM SP), Dairy Farm (DFI SP), Hongkong Land (HKL SP), Mandarin Oriental (MAND SP), Cycle & Carriage (JCNC SP) and Astra International (ASII IJ).
Michele Ragazzi's Giano Capital returned 1.9% for March, taking the fund's year-to-date performance to 1.7%. Since its inception, Ragazzi's flagship fund has produced a compound annual return of 7.8%. According to a copy of the €10 million fund's March update, a copy of which ValueWalk has been able to review, Giano's most significant investment at Read More
Jardine employs a whopping 440,000 people.
The company is controlled by the Keswick family, an uber-wealthy Scottish clan, through Jardine Matheson Holdings. The family is said to be worth £1.7 billion.
Jardine Strategic Holdings
Business Description
JS is active in many business segments, mainly in China and Southeast Asia, accounting for 93% of revenue, through six main subsidiaries. PT Astra International Tbk (ASII IJ)—three main segments are automotive, heavy equipment and mining, and financial services. Dairy Farm International Holdings Limited (DFI SP)—operates in four broad formats: food, health & beauty, home furnishings and restaurants.
Jardine Matheson Holdings Limited (JM SP)—present in construction, engineering, motor vehicles, and insurance through Jardine Lloyd Thompson Group Public Limited Company (JLT LN). Jardine Cycle & Carriage Limited (JCNC SP)—holds 50% of ASII and includes auto dealerships and financing, engineering and cement segments. Hongkong Land Holdings Limited (HKL SP)—is involved with high-end property investment, management and development. Mandarin Oriental International Limited (MAND SP)—operates 46 deluxe hotels, resorts and residences.
Leadership
Chairman Henry Keswick has remained at the helm since 1989. Having joined the family business in 1961, he is director of Dairy Farm, Hongkong Land and Mandarin Oriental.
Ben Keswick has been Managing Director since 2012. Since then the company’s Profitable Growth score has improved gradually, although it remains below average.
Since 1998, he has held a number of executive positions, including finance director and then chief executive officer of Jardine Pacific between 2003 and 2007. He has an MBA from INSEAD. He is chairman and managing director of Dairy Farm, Hongkong Land and Mandarin Oriental, managing director of Jardine Matheson and a director of Jardine Pacific and Jardine Motors.
World Class Benchmarking
Profitable Growth has been stuck at #6 since 2014, slightly below average for large Industrials. In fact, Jardine only ranks among the top 840 of 1,400 large industrial companies.
One positive sign is Growth. Growth has surged to #3 from #9 in 2012. Profitability, however, has remained at #6.
Profit margin has been the primary driver of Profitability, while Asset utilization has been stuck at #9 for five years straight.
Margin Change, coming in at #2, has been one of the few positive details in a sea of mediocrity.
This article first appeared on Become A Better Investor
