Yangzijiang Shipbuilding (Holdings)

Raising S$209m while paying S$153m-210m annually as diividends

http://www.businesstimes.com.sg/companie...nvestments

(31-08-2017, 12:14 PM)specuvestor Wrote: Raising S$209m while paying S$153m-210m annually as diividends

http://www.businesstimes.com.sg/companie...nvestments

Red Flag??

(31-08-2017, 12:39 PM)desmondxyz Wrote:

(31-08-2017, 12:14 PM)specuvestor Wrote: Raising S$209m while paying S$153m-210m annually as diividends

http://www.businesstimes.com.sg/companie...nvestments

Red Flag??

Looks like a major red flag.

(31-08-2017, 12:14 PM)specuvestor Wrote: Raising S$209m while paying S$153m-210m annually as diividends

http://www.businesstimes.com.sg/companie...nvestments

To me, it looks like management is signalling that the shares are overvalued.

(31-08-2017, 02:51 PM)Clement Wrote:

(31-08-2017, 12:14 PM)specuvestor Wrote: Raising S$209m while paying S$153m-210m annually as diividends

http://www.businesstimes.com.sg/companie...nvestments

To me, it looks like management is signalling that the shares are overvalued.

I concur. It will be a (major) red flag if Mgt raises more cash from share placement than they give out in dividends.


without any pending CAPEX or specific debt retirement,
If they raise cash via share placement at 52weeks high, most probably they think their shares are overvalued (cost of equity < cost of debt).
If they raise cash via share placement at 52weeks low, most probably they are desperate for survival

(31-08-2017, 02:51 PM)Clement Wrote:

(31-08-2017, 12:14 PM)specuvestor Wrote: Raising S$209m while paying S$153m-210m annually as diividends

http://www.businesstimes.com.sg/companie...nvestments

To me, it looks like management is signalling that the shares are overvalued.

In their last equity raising in Oct 2007 they raised SGD208.4m @ SGD2.58. Looks like they have been good picking peaks

I don't think they are in any sort of S-chip trouble per se. They have been paying dividends since 2008 without break. BDIY rebounded and bulk shippers have seen their results recovering.

But VBs here know that YZJ is one of few S-chips that I am partial to

Ren Letian, the son bought 2 million shares today at about $1.5 per shares. Seems like the overvalued theory is broken?

http://infopub.sgx.com/FileOpen/_eFORM1V...eID=469295

(31-08-2017, 06:40 PM)Millionfaith Wrote: Ren Letian, the son bought 2 million shares today at about $1.5 per shares.  Seems like the overvalued theory is broken?

http://infopub.sgx.com/FileOpen/_eFORM1V...eID=469295

Or was the action just to boast confidence to investors? Now that the share price is below the placement price of 1.53. Will the placement still go thru?

(31-08-2017, 08:51 PM)Bibi Wrote:

(31-08-2017, 06:40 PM)Millionfaith Wrote: Ren Letian, the son bought 2 million shares today at about $1.5 per shares.  Seems like the overvalued theory is broken?

http://infopub.sgx.com/FileOpen/_eFORM1V...eID=469295

Or was the action just to boast confidence to investors? Now that the share price is below the placement price of 1.53. Will the placement still go thru?

According to my understanding, the placement agent, JP Morgan is liable to subcribe if there is no institutional investors.

http://infopub.sgx.com/FileOpen/YZJ%20-%...eID=469159

The article gave more clues, after the cash call.

The placement is above book value, thus the net asset value will be lifted. M&A is always on the table, if the company/price is right.

https://www.theedgesingapore.com/yangzij...8-87293917