Jardine Matheson/ Jardine Strategic

Jardine Matheson/ Jardine Strategic: CS noted that JM/JS are trading near their historical highs, and believe further upside could come from continued share price appreciation of their listed holdings, particularly Hongkong Land and Astra. On HK Land (OUTPERFORM, TP US$8.08), CS believes that the prime Central office landlord is exposed to a recovery in HK commercial property where 4Q12 office rents in Central saw a further deceleration of decline at -1.8% QoQ, which the house believes that the trough of Central office rents is gradually over. This is further reinforced by an improvement in economic indicators, and the revival of the capital market could lead to upside to the office rental assumption. The house also expects further catalyst from the passage of low-cost green car (LCGC) regulation in Indonesia in the coming months, which could drive an acceleration of earnings growth for Astra (OUTPERFORM, TP Rp9,400) in FY13E to 36%. CS expect Astra to roll out products by 2H13, while its competitors will follow suit only by the end of FY13E and early FY14E. In their view, LCGCs will be appealing to first-time buyers, individuals looking to upgrade from high-end two-wheelers to LCGCs, those looking for a daily-use four-wheeler with higher fuel efficiency and current second-hand car buyers. CS has a OUTPERFORM rating on both names, and has raised the TP for JM to $73.00, and a TP of $42.00 for JS.