In this episode of Yet Another Value Podcast, host Andrew Walker speaks with Dom St. George from Cayucos Capital about Jardine Matheson, a complex, centuries-old conglomerate currently trading at a discount to its net asset value. Dom shares insights from over a decade of following the company, breaking down its historic roots, complicated structure, and the recent strategic overhaul under fifth-generation leadership. The conversation digs into the potential implications of new private equity hires, the value locked in Hong Kong Land and Mandarin Oriental, and whether simplification or empire-building lies ahead. Tune in for a discussion on the nuances of holdco investing and Asia’s corporate evolution.
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[00:00:00] Andrew introduces Jardine Matheson
[00:02:45] Dom joins and outlines background
[00:03:30] Jardine’s history in opium trade
[00:06:00] Creation of Hong Kong background
[00:07:30] Cross-holdings and structure issues
[00:09:00] Recent disposals and simplification steps
[00:10:24] Current NAV discount and relevance
[00:11:33] Major business segments explained
[00:13:00] Hong Kong Land valuation dynamics
[00:14:06] Debating real estate cap rate fairness
[00:16:36] Hiring private equity insiders
[00:18:12] Risks of reinvestment vs. wind-down
[00:20:46] Goal to raise AUM at Hong Kong Land
[00:22:52] Market discounts family holdcos
[00:24:56] Sell-mode vs. buy-mode question
[00:26:41] Pattern of mistimed investments
[00:27:05] Focus on five-year shareholder returns
[00:29:00] Mandarin Oriental asset repositioning
[00:30:55] Mandarin’s trophy brand potential
[00:32:00] Selling HK hotel land to Alibaba
[00:33:48] Lack of share buybacks questioned
[00:34:52] 1947 Trust and executive incentives
[00:36:50] Potential misalignment in trust structure
[00:38:23] Why Jardine vs. other holdcos?
[00:39:43] Astra International’s complexity
[00:41:48] Subsidiaries: elevators, Pizza Hut, KFC
[00:42:47] Final thoughts and episode wrap-up
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