Latest news with #JohnsonMattheyPlc
Fashion Network
3 days ago
- Business
- Fashion Network
Chinese platinum jewelry demand remains muted, says refiner
Metals refiner Johnson Matthey Plc sees muted demand for platinum jewelry among Chinese consumers, in spite of a recent surge in imports by manufacturers that's straining global supplies of the metal. The world's second-biggest refiner of platinum group metals said strong physical demand from China has exacerbated tightness in the market and pushed prices to two-year highs, as the jewelry industry aggressively stockpiles the cheaper alternative to gold. But Johnson Matthey remains cautious on prospects for end-user demand, which is expected to climb only about 1% this year, according to the company's director of market research. 'Just because retailers and wholesalers are stocking up on platinum doesn't mean consumers are buying in,' said Rupen Raithatha, adding that the company's 2025 demand forecast was a conservative estimate. The resulting excess inventory could discourage future manufacturing, he added. Citigroup Inc. analysts said last week that Chinese buyers still favor gold over platinum jewelry, noting they would continue to monitor the market for a material shift in consumer behavior. Tepid consumption of platinum jewelry may offer relief to a market that's been under strain since fears over potential US tariffs saw traders race to deliver metal into New York warehouses to capitalize on extreme price dislocations. More recently, lease rates in London have also surged to near historic highs, underscoring supply tightness as metal flowed to China. Declining demand from the automotive sector — the metal's largest end-user — will also ensure there's no major structural uptrend in platinum prices in the long-term, according to Marcus Garvey, head of commodity strategy at Macquarie Group Ltd. Still, prices could remain elevated next year due to expectations of a multi-year supply deficit, he added. 'There is still above ground inventory, but China has effectively taken it out of the Western market.'
Fashion Network
3 days ago
- Business
- Fashion Network
Chinese platinum jewelry demand remains muted, says refiner
Metals refiner Johnson Matthey Plc sees muted demand for platinum jewelry among Chinese consumers, in spite of a recent surge in imports by manufacturers that's straining global supplies of the metal. The world's second-biggest refiner of platinum group metals said strong physical demand from China has exacerbated tightness in the market and pushed prices to two-year highs, as the jewelry industry aggressively stockpiles the cheaper alternative to gold. But Johnson Matthey remains cautious on prospects for end-user demand, which is expected to climb only about 1% this year, according to the company's director of market research. 'Just because retailers and wholesalers are stocking up on platinum doesn't mean consumers are buying in,' said Rupen Raithatha, adding that the company's 2025 demand forecast was a conservative estimate. The resulting excess inventory could discourage future manufacturing, he added. Citigroup Inc. analysts said last week that Chinese buyers still favor gold over platinum jewelry, noting they would continue to monitor the market for a material shift in consumer behavior. Tepid consumption of platinum jewelry may offer relief to a market that's been under strain since fears over potential US tariffs saw traders race to deliver metal into New York warehouses to capitalize on extreme price dislocations. More recently, lease rates in London have also surged to near historic highs, underscoring supply tightness as metal flowed to China. Declining demand from the automotive sector — the metal's largest end-user — will also ensure there's no major structural uptrend in platinum prices in the long-term, according to Marcus Garvey, head of commodity strategy at Macquarie Group Ltd. Still, prices could remain elevated next year due to expectations of a multi-year supply deficit, he added. 'There is still above ground inventory, but China has effectively taken it out of the Western market.'
Fashion Network
3 days ago
- Business
- Fashion Network
Chinese platinum jewelry demand remains muted, says refiner
Metals refiner Johnson Matthey Plc sees muted demand for platinum jewelry among Chinese consumers, in spite of a recent surge in imports by manufacturers that's straining global supplies of the metal. The world's second-biggest refiner of platinum group metals said strong physical demand from China has exacerbated tightness in the market and pushed prices to two-year highs, as the jewelry industry aggressively stockpiles the cheaper alternative to gold. But Johnson Matthey remains cautious on prospects for end-user demand, which is expected to climb only about 1% this year, according to the company's director of market research. 'Just because retailers and wholesalers are stocking up on platinum doesn't mean consumers are buying in,' said Rupen Raithatha, adding that the company's 2025 demand forecast was a conservative estimate. The resulting excess inventory could discourage future manufacturing, he added. Citigroup Inc. analysts said last week that Chinese buyers still favor gold over platinum jewelry, noting they would continue to monitor the market for a material shift in consumer behavior. Tepid consumption of platinum jewelry may offer relief to a market that's been under strain since fears over potential US tariffs saw traders race to deliver metal into New York warehouses to capitalize on extreme price dislocations. More recently, lease rates in London have also surged to near historic highs, underscoring supply tightness as metal flowed to China. Declining demand from the automotive sector — the metal's largest end-user — will also ensure there's no major structural uptrend in platinum prices in the long-term, according to Marcus Garvey, head of commodity strategy at Macquarie Group Ltd. Still, prices could remain elevated next year due to expectations of a multi-year supply deficit, he added. 'There is still above ground inventory, but China has effectively taken it out of the Western market.'
Fashion Network
3 days ago
- Business
- Fashion Network
Chinese platinum jewelry demand remains muted, says refiner
Metals refiner Johnson Matthey Plc sees muted demand for platinum jewelry among Chinese consumers, in spite of a recent surge in imports by manufacturers that's straining global supplies of the metal. The world's second-biggest refiner of platinum group metals said strong physical demand from China has exacerbated tightness in the market and pushed prices to two-year highs, as the jewelry industry aggressively stockpiles the cheaper alternative to gold. But Johnson Matthey remains cautious on prospects for end-user demand, which is expected to climb only about 1% this year, according to the company's director of market research. 'Just because retailers and wholesalers are stocking up on platinum doesn't mean consumers are buying in,' said Rupen Raithatha, adding that the company's 2025 demand forecast was a conservative estimate. The resulting excess inventory could discourage future manufacturing, he added. Citigroup Inc. analysts said last week that Chinese buyers still favor gold over platinum jewelry, noting they would continue to monitor the market for a material shift in consumer behavior. Tepid consumption of platinum jewelry may offer relief to a market that's been under strain since fears over potential US tariffs saw traders race to deliver metal into New York warehouses to capitalize on extreme price dislocations. More recently, lease rates in London have also surged to near historic highs, underscoring supply tightness as metal flowed to China. Declining demand from the automotive sector — the metal's largest end-user — will also ensure there's no major structural uptrend in platinum prices in the long-term, according to Marcus Garvey, head of commodity strategy at Macquarie Group Ltd. Still, prices could remain elevated next year due to expectations of a multi-year supply deficit, he added. 'There is still above ground inventory, but China has effectively taken it out of the Western market.'
Yahoo
17-03-2025
- Business
- Yahoo
Investors in Johnson Matthey (LON:JMAT) have unfortunately lost 15% over the last three years
In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Johnson Matthey Plc (LON:JMAT) shareholders, since the share price is down 25% in the last three years, falling well short of the market return of around 18%. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. View our latest analysis for Johnson Matthey In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Although the share price is down over three years, Johnson Matthey actually managed to grow EPS by 61% per year in that time. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Or else the company was over-hyped in the past, and so its growth has disappointed. It's worth taking a look at other metrics, because the EPS growth doesn't seem to match with the falling share price. Given the healthiness of the dividend payments, we doubt that they've concerned the market. On the other hand, the uninspired reduction in revenue, at 11% each year, may have shareholders ditching the stock. This could have some investors worried about the longer term growth potential (or lack thereof). The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Johnson Matthey will earn in the future (free profit forecasts). As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Johnson Matthey's TSR for the last 3 years was -15%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. Investors in Johnson Matthey had a tough year, with a total loss of 13% (including dividends), against a market gain of about 13%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 1.7% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Johnson Matthey is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant... If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
