Excerpt from DBS report.

Report Summary

• Jardine Cycle & Carriage (JC&C) and its 50.1%-owned Astra are expected to reveal more details on their five-year total shareholder return (TSR) strategy by 1H26, which is seen as a major re-rating catalyst.
• Recent share weakness in both stocks is mainly due to external factors (MSCI index concerns, credit headlines), presenting an attractive entry opportunity.
• JC&C is preferred over Astra for exposure to TSR, as it offers both Astra’s recovery and additional Vietnam growth (via investments in THACO Group and REE Corporation), while reducing sensitivity to Indonesia-specific market volatility.
• Astra’s fundamentals remain strong, driven by market leadership in two-wheelers, hybrid vehicle launches, export upside, and manageable risks in gold and coal operations.
• Vietnam is highlighted as a key growth driver for JC&C, especially through THACO’s expanding position in autos and REE’s role in renewables and infrastructure.
• Potential catalysts include share buybacks, higher dividends, capital recycling, and value unlocking in Vietnam (e.g., Vinamilk divestment, M&A).
• Despite Astra trading at a valuation discount, persistent technical overhangs (MSCI, foreign flows) may delay its re-rating, making JC&C the more efficient vehicle for TSR-driven upside in the near term.
• DBS maintains BUY ratings on both JC&C (TP SGD38.50) and Astra (TP IDR8,100), but advocates JC&C as the preferred way to capture re-rating and growth catalysts linked to the five-year TSR plan.
• Downside risks for Astra from regulatory/commodity issues are deemed limited and already priced in by the market.
• Clearer TSR and capital allocation visibility, especially at JC&C, are expected to support medium-term re-rating for both stocks.

Above is an excerpt from a report by DBS. Clients of DBS can be the first to access the full report from the DBS website : https://www.dbs.com.sg/