Jardine Matheson Holdings' Investment Strategy Key to Growth, S&P Says

MT Newswires03-13 16:19

Jardine Matheson Holdings (SGX:J36) will channel its investment efforts to support growth and offset declining EBITDA due to asset divestments, S&P Global Ratings said in a recent release.

S&P expects the company's EBITDA to drop about 4% this year, following a 6% decline last year.

Among the company's subsidiaries, Astra International (IDX:ASII) will see a slightly dampened performance given a decline in coal production quota and lingering weakness in automotive sales.

Hong Kong Land Holdings faces declining EBITDA mainly due to lower asset holdings and shrinking office rents.

EBITDA will also wane for DFI Retail Group Holdings (SGX:D01) as asset disposals offset a 3% organic growth in operations.

Jardine will focus on investments to boost its business profile and is likely in a better position given its enhanced investment capacities, with a CEO and directors who have substantial investment experience.

The company also raised its financial capacity to invest, with asset recycling at subsidiaries lowering the debt-to-EBITDA ratio to 1.5x last year.

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