Jardine Strategic's full-year profit up 40%, buoyed by Hongkong Land

JARDINE Strategic Holdings on Thursday posted a 40 per cent year-on-year jump in net profit to US$2.7 billion for the 12 months ended Dec 31, 2016, lifted by a US$1.2 billion share in Hongkong Land's increase in value of its investment property portfolio and net gains of some US$55 million.

Underlying profit for the full year was up one per cent at US$1.44 billion, while underlying earnings per share at US$2.45 were 3 per cent higher following share repurchases made during the year.

Revenue rose 11 per cent to US$72.4 billion, including revenue from Jardine Matheson, associates and joint ventures.

Net asset value per share was up 7 per cent to US$53.25. The group produced a satisfactory result for the year as most of its businesses traded well.

A final dividend of 21 US cents per share was declared, which increases the dividend by 5 per cent for the full year to 30 US cents per share.

The group said good performances were seen in Jardine Matheson, where Jardine Motors and most of Jardine Pacific's activities did well, although Jardine Lloyd Thompson faced challenging markets.

Dairy Farm, it said, made further progress in highly competitive retail markets and steady performances were seen in Hongkong Land's operations.

"Astra produced some very good trading results, although its profit growth was held back by provisions in its banking affiliate, while Jardine Cycle & Carriage saw good contributions from its non-Astra interests."

The group added that Mandarin Oriental saw more difficult trading in some key markets.

Said chairman Henry Keswick: "The group companies traded steadily in 2016 and it is expected that they will continue in a similar vein in 2017, while at the same time steps are being taken to improve their underlying performances and invest in key areas for future growth."