Tear Sheet: Jardine Matheson Holdings Ltd.

Jardine Matheson Holdings Ltd. faces rising challenges from its exposure to Hong Kong and China?s property markets. EBITDA contribution from the company's property arm Hongkong Land Holdings Ltd. (HKL) in the first half of 2024 was weaker than we expected. Profitability in the China property developments also significantly declined amid weak market conditions. In addition, HKL will likely face higher pressure from its Hong Kong investment property portfolio in the next 12 months. Higher office vacancy in Hong Kong's central business district and weakness in Hong Kong retail could weigh on rental income. Our base case assumes HKL will hold back significant investments on China development properties and deploy cash flow to reduce debt over the next one to two

...Rating Component Scores Foreign currency issuer credit rating A+/Stable/-- Local currency issuer credit rating A+/Stable/-- Business risk Strong Country risk Intermediate Industry risk Intermediate Competitive position Strong Financial risk Intermediate Cash flow/leverage Intermediate Anchor a- Diversification/portfolio effect Moderate (+1 notch) Capital structure Neutral (no impact) Financial policy Positive (+1 notch) Liquidity Strong (no impact) Management and governance Positive (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile a+...

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