Jardine Matheson Holdings has unveiled a target to deliver a 9% annual return on equity through to 2030, as the conglomerate seeks to reassure investors after years of underperformance relative to Asian peers. The group, which controls businesses from Hongkong Land to Dairy Farm, said the goal would be supported by organic growth, portfolio simplification, and a reduction in net debt.
The announcement accompanied full-year results for 2024, which showed underlying profit up 7% to $3.1bn (£2.5bn), driven by strong performances from its motor division Astra and property arm Hongkong Land. However, reported profit attributable to shareholders fell 28% to $1.7bn, largely due to a $1.5bn write-down on its Southeast Asian property portfolio, reflecting weaker markets in Vietnam and Indonesia.
Jardine's chairman, Ben Keswick, said the group would focus on 'disciplined capital allocation' and operational efficiency. 'Our target is ambitious but achievable, and it reflects our confidence in the long-term prospects of the markets in which we operate,' he added. The group also confirmed it would continue to review its corporate structure, with a view to reducing complexity and unlocking shareholder value.
The target marks a shift in strategy for the 192-year-old conglomerate, which has faced criticism from some investors for its sprawling structure and exposure to slower-growing markets. Analysts at Citi noted that the 9% return target is broadly in line with the group's historical average, but cautioned that execution would be key given macroeconomic headwinds in China and Southeast Asia.
For UK investors and pension holders with exposure to Asia-focused funds, the Jardine update offers a barometer of sentiment in the region. The FTSE 100-listed stock has lagged the broader market over the past five years, and the new target may prompt a reassessment of its long-term value. Shares in Jardine Matheson were 1.2% higher in London trading on Thursday, at 2,560p. Source: Jardine Matheson Holdings annual results statement.