Jardine C&C reports improved Q1 on the back of Astra earnings surge; shares jump 8.5%

JARDINE Cycle & Carriage (Jardine C&C) saw its shares jump 8.5 per cent or S$2.27 to S$29.10 before the lunch break on Apr 28, after it reported “improved performance” in the first quarter of 2022.

The improvement was largely driven by higher contribution from its 50.1 per cent-owned Astra International.

Known in Singapore as a Mercedes-Benz dealer, Jardine C&C did not disclose its financial figures for Q1 in the interim management statement issued after market close on Apr 27.

“While the group is encouraged by the good performance achieved in the first quarter, it remains cautious about the uncertainties arising from the pandemic and geopolitical tensions for the rest of the year,” it said in the bourse filing.

Astra, the Indonesia-based automotive group, saw its earnings jump 84 per cent in the first quarter, on the back of domestic economic recovery and higher commodity prices.

Broad-based improvement across all its segments saw net income rise to 6.9 trillion Indonesian rupiah (S$656.5 million) in Q1, from 3.7 trillion rupiah a year ago. Net revenue climbed 39 per cent to 71.9 trillion rupiah.

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Net income from the group’s automotive division rose 56 per cent to 2.2 trillion rupiah, propelled by increased car sales due to luxury sales tax incentives.

Its heavy equipment, mining, construction and energy division saw net income more than double to 2.6 trillion rupiah, from 1.1 trillion rupiah in the year-ago period, on increased heavy equipment sales and higher coal selling prices.

Jardine C&C said its other strategic interests also “continued to perform well”.

For example, Vietnam-based THACO Corporation, in which Jardine C&C owns a 26.6 per cent stake, achieved higher automotive sales and margins during the period. This was mainly due to an improved sales mix, supported by a reduction in registration fees for locally-assembled vehicles, the group said.