We initiate coverage on Jardine Cycle & Carriage (JCC) with a BUY recommendation and target price of S$49.88. JCC is a near 100% proxy for Jakarta-listed Astra International (Astra), with exposure to S.E. Asia’s automotive market. The Group owns 50.1% of Jakarta-listed Astra International (Astra), which contributes c.94% of the Group’s total underlying profit. We expect firm double-digit earnings growth in 2015 and 2016, driven by contribution from Astra. The stock also offers a decent dividend yield of c.3.5%.
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