Dark days ahead for Jardine Cycle & Carriage amid Indonesian slowdown

Astra's outlook is clouded this year.

Jardine Cycle & Carriage is in for a tough year ahead as its cash cow Astra International grapples with Indonesia's economic slowdown.

Analyst Paul Yong of DBS Vickers noted that Astra's outlook is clouded this year by low commodity prices, the Indonesian economy's slowdown and volatile oil prices.

Astra contributed over 90% of Jardine C&C's total underlying profit and Jardine's share price has a 99% positive correlation in USD terms with Astra.

“Coupled with a strong US$ vs IDR outlook, we project 15% earnings decline in US$ terms for JC&C in 2015, and just 1% growth in 2016. The weak earnings outlook for Astra International has triggered a downgrade for Astra International and also anchors our recommendation downgrade for JC&C,” Yong said.

“With the majority of JC&C’s profits coming from Indonesia, JC&C is exposed to the volatility in the Indonesian economy. While we are positive on the longer term prospects for Indonesia, Astra International (and thus JC&C) faces some short-term headwinds in the auto and agribusiness segments,” he added.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia