To The Moon

🌟🌟🌟In a massive win for every day retail investors, the SGX has officially slashed its minimum board lot size from 100 shares to just 10 shares for 11 of its most premium, high priced blue chip counters.  By shrinking the lot size to 10 shares, SGX has effectively democratised wealth building.  Investors with modest budgets can now buy a bite sized piece of Singapore's multi billion dollar economic pillars.  No company exemplifies this newly unlocked opportunity better than Jardine Matheson Holdings $JMH USD(J36.SI)$ .  It is the legendary crown jewel of Asian conglomerates.

Spotlight on Jardine Matheson: A Scottish Empire Founded in 1832 in Guangzhou China 

For nearly 2 centuries, the inner workings of Jardine Matheson read less like a corporate balance sheet and more like a sweeping historical novel.

Jardine Matheson was originally founded on July 1 1832 by Scottish traders William Jardine and James Matheson in Guangzhou China .  The current holding company Jardine Matheson Holdings Ltd was later incorporated in Bermuda on 9 April 1984 during a corporate reorganisation ahead of the handover of Hong Kong.

If you ever walked through the glittering glass towers of Singapore's Marina Bay, bought a quick snack at a 7-Eleven or admired a sleek Mercedes Benz cruising down the highway , you have stepped right into their invisible web.

The SGX 10 lot revolution has completely rewritten the ending to this story.  For decades the gates to this exclusive castle were shut tight to the everyday investor, guarded by a massive USD 5,600 entry requirement for a single 100 share lot.  Now with the minimum requirement slashed to just 10 shares, anyone can own this conglomerate for a modest capital outlay of around USD 560.  This allows co-ownership of one of the most powerful corporate dynasties in Asian history.

What Jardine Matheson Owns:

Hongkong Land $HongkongLand USD(H78.SI)$  - Prime commercial real estate in Hong Kong's Central district and Singapore's Marina Bay.

DFI Retail Group $DFIRG USD(D01.SI)$  .  It is the parent company behind Cold Storage,  Giant, 7-Eleven and Guardian Pharmacy.

Mandarin Oriental: Ultra luxury hospitality properties spread across major global gateway cities 

$Jardine C&C(C07.SI)$  and Astra: Dominates automotive distribution, heavy machinery and mining across Indonesia and South East Asia.

I-Med Radiology Network: Global leader in diagnostic imaging and teleradiology based in Australia with a presence in New Zealand and the USA.

Jardine Engineering & Infrastructure: A portfolio of engineering specialists with leading technical expertise, rooted in Hong Kong with a presence in South East Asia.

Jardine SEA: Portfolio of market leading businesses in Vietnam, held under Jardine Matheson South East Asia, an intermediate holding company of Jardine Matheson.

Financial Snapshot and Performance 

Jardine Matheson's stock has faced heavy macroeconomic headwinds recently due to its historic exposure to China and Hong Kong property, leading to sluggish performance.  It is currently down 17% year todate.  However this has created a major value mispricing.

Dividend Yield: A robust highly reliable 4.3% forward yield.  Jardine has a legendary track record of paying and growing dividends semi annually.

Consensus Analyst Target Price: USD 85.12.  Analysts currently track a huge +52% projected upside with a Strong Buy conviction because the stock trades at a deep discount to its true Net Asset Value.

The Verdict 

Jardine Matheson is a Buy for defensive value investors who want an income producing shield in their portfolio.  It won't move with the hyper growth speed of a tech stock but its underlying asset quality makes it an incredibly safe fortress to invest in and pocket steady cash dividends.

As Warren Buffett famously said:

"Buying quality merchandise when it is marked down apies equally to stocks."

Applying this philosophy to Jardine Matheson elevates it from a mere stock transaction to a masterclass in value investing.

@Tiger_SG  @TigerStars  @Tiger_comments