For years, despite their size and status as longtime components of the Straits Times Index (STI), the Jardines had not quite bothered with making themselves better known to the investing public here in Singapore. This is even though businesses owned by the Jardines permeate the daily lives of consumers in no way less than the likes of DBS Group Holdings and Singapore Telecommunications.
“Whether it’s Berkshire Hathaway or Investor AB in Sweden, you sit with them, and you understand what they’re going to do,” a fund manager who invested in Jardine Matheson told the Financial Times. “Jardine is a little more mysterious.”
Changes have taken place in a rather visible way. In contrast to the Jardine lifers, a new generation of managers has been brought in: Lincoln Pan, previously from alternative investment firm PAG, is now running Jardine Matheson; Michael Smith, formerly from Mapletree, is leading the asset recycling charge at Hongkong Land. Scott Price, previously with various US consumer goods companies, is lending a fresh perspective to DFI.
Smith, frequently seen in the media, is fond of repeating this quote: “We say what we do, and we do what we say.” Price of DFI told The Edge Singapore in this week’s cover story that local insights by locals are key, instead of relying on an “expat from Europe”.
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According to UBS in a recent note, Jardine and its units are expected to be more efficient in the way it operates and generate returns by tapping external money. Hongkong Land just last month announced the $8.2 billion Central Private Real Estate Fund. By doing so, it can recycle some of its capital, earn fees from managing both funds and properties, while also riding the potential upside of asset values. “This is crucial to Jardine Matheson as Hongkong Land accounts for almost 60% of Jardine Matheson’s equity base,” says UBS.
DFI, with operational improvements and having gotten rid of underperforming associate stakes, is seen to contribute more earnings too. With around 7,500 retail stores, it controls an expansive platform to install in-store videos to sell media space to brands promoting their products to consumers. With this margin accretive business and coupled with other moves, DFI can aim for up to 6 percentage points more in return on capital employed by FY2028 over FY2025.
Such moves have inspired UBS to raise its target price for Jardine Matheson from an already bullish US$83.40 ($106.32) to US$91.40. “We think this is not the end of its equity story.”
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Much of the credit for the STI’s march towards 5,000 points has been given to the three banks, which take up half the weight of the index and have all been generous in returning cash to shareholders. Other heavyweights, the likes of Singtel and Keppel, have been recognised too, for active capital recycling moves and decisive shifts in the way they operate. Please the investors, and the share price will follow.
Be it by design or not, what Jardine is doing is parallel to the overall bid by Singapore to make its stock market more attractive with this whole series of value-up moves. As of Dec 31, 2025, Jardine Matheson, with a weightage of 3.74%, is the fifth “heaviest” STI component stock behind Singtel’s 7.82%. Hongkong Land Holdings took the 11th spot with 2.12%, while DFI was at 0.36%. Their contribution to STI’s move up should be noted as well. If the STI is to head towards the next level, every component stock will need to pull its weight.
