Yangzijiang Financial Holding

Very excited to see YZJ Fin Hldg listed in SGX on 1pm 28 Apr 2022.
https://links.sgx.com/1.0.0/corporate-an...68a3f93186

It will be added to STI, FTSE ST Mid Cap Index, FTSE ST China Index and FTSE ST All-Share Index too.
http://yangzijiang-cn.listedcompany.com/...PC0B.1.pdf

Vested

Gratitude!

https://www.weightedresearch.com/p/demer...ilding?s=r

Demerger of Yangzijiang Shipbuilding Holdings (YZJ)
Which will face the drop? The ship or the financial?

"With a general weakness in the market and international investor avoiding everything Chinese, there could just be a good chance that the YZJFH will be sold down by most institutional investors.

In the meantime, I just wait for the price to come to me.

if it comes…"

Why not buy Hotung instead??? It got a better track record and dividend record....been paying 10% dividend yield even as share price moves up...not vested though....

Seems to me that shareholders who got the shares are selling and using the proceeds to pile back into YZJ shipbuilding

a bit weird:

• circular is dated for tomorrow
  
• 10% share buyback is illustrated as EPS gets reduced after share buyback
  

https://links.sgx.com/FileOpen/Yangzijia...eID=718258

Eps is shown to be lower cos they used the same number of shares.

Would like to get a discussion going on an alternative view of how much YZJ FH is really worth. There has been much commentary going on with the share price on a persistent downtrend. Is it cheap or is it not?

https://www.thesquirrelsdrey.com/post/ya...uld-you-do

(24-05-2022, 03:37 AM)Squirrel Wrote: Would like to get a discussion going on an alternative view of how much YZJ FH is really worth. There has been much commentary going on with the share price on a persistent downtrend. Is it cheap or is it not?

https://www.thesquirrelsdrey.com/post/ya...uld-you-do

Thanks for the detailed analysis. 

Besides Hotung, do you think TIH and GIL are also comparable companies?  Both are trading below book value as well, particularly TIH. In fact I doubt they have ever gone close to their book value. Maybe that is how the market value investment companies.

(24-05-2022, 12:53 PM)touzi Wrote:

(24-05-2022, 03:37 AM)Squirrel Wrote: Would like to get a discussion going on an alternative view of how much YZJ FH is really worth. There has been much commentary going on with the share price on a persistent downtrend. Is it cheap or is it not?

https://www.thesquirrelsdrey.com/post/ya...uld-you-do

Thanks for the detailed analysis. 

Besides Hotung, do you think TIH and GIL are also comparable companies?  Both are trading below book value as well, particularly TIH. In fact I doubt they have ever gone close to their book value. Maybe that is how the market value investment companies.

I would think that these companies/funds are not directly comparable due to the size of their market cap. Personally, I believe larger firms typically command a premium to smaller companies as a rule of thumb.

Even if we tried to peg their characteristics to YZJ FH, these can have varying results. Take GIL which is running at $240m market cap, that’s about 0.77 P/B ratio on its NAV. Take any of the other ratios such as dividend yield of 5.1% or PE of 16.5, and plug it to YZJ FH, you are going to get much higher than YZJ FH’s current market cap. And this is when GIL have a more similar asset class breakdown with YZJ FH compared to TIH.

For TIH, it’s similar to Hotung with predominantly private equity fund investments and direct investments into the companies. It was trading at higher than book value until it experienced rather large losses in 2018 and subsequently in 2020. This is very typical of equity investments and probably natural that investors require a bigger buffer when it comes to equity like investments. It’s only $56.8m market cap as well which isn’t really at the scale YZJ FH is at.

I believe YZJ FH would be more in demand when 1) share buybacks start, 2) it starts to deliver its first dividend, 3) it succeeds in tie ups with the government on joint ventures (evident that there are links here with the $25m unsecured convertible bonds issued to EDB Investments)

Just my 2 cents here. Happy to hear more opinions.

(24-05-2022, 03:37 AM)Squirrel Wrote: Would like to get a discussion going on an alternative view of how much YZJ FH is really worth. There has been much commentary going on with the share price on a persistent downtrend. Is it cheap or is it not?

https://www.thesquirrelsdrey.com/post/ya...uld-you-do

Hi Squirrel,

YZJSB essentially started out as a ship builder before venturing into finance. So there will be a bias towards ship building, resulting in shareholders who gotten FH shares, selling those shares and ploughing the proceeds back into SB. So, it is some great 2nd level thinking you have, to exploit this bias.

I do observe that Ren Yuanlin, has "come out of retirement" and has taken on the executive chairman at FH. In earlier posts, specuvestor has been waiting for ~14 years (and counting) for them to blow up since they started the non core financing arm. If Chairman Ren (Father) is a seasoned battle hardened businessman who is able to straddle seamlessly between politics and business worlds, then it is heartening to see him taking up the role again.

EPS = NPAT/average number of shares.
Since the spin off happened in 2022, I assumed that for 2021 illustrative , share count before buyback is taken as average number of shares.

https://links.sgx.com/FileOpen/Yangzijia...leID=55216

When I look at YZJFH, I look at track record, and its record is based on lending. Post spin off, YZJFH suddenly know how to and expand to invest in all kind of stuffs. So the question is will YZJFH able to compete in 100m, 200m, 400m, long jump after spin off after spending years trying to be Joseph Schooling.

para 2.3 (a)
A Leading Investment Management Business and Debt Investment Business in Asia, in terms of the Spin-Off Group’s total AUM size and/or market capitalisation compared to other publicly listed investment management companies in Asia(1)

para 2.3 (b) Strategies and Future Plans
Upon the listing of YZJFH on the Mainboard of the SGX-ST, the Spin-Off Group intends to pare down its Debt Investment Business and continue to strengthen its position by pursuing growth via its Investment Management Business and by entering into the Fund/Wealth Management Business, underpinned by focused strategies to (a) grow its Investment Portfolio in the PRC; (b) recycle capital from the Debt Investment Business to Fund Investments in the Investment Management Business; © extend its investment footprint into Singapore by partnering prominent Fund
management companies to launch co-GP Funds; (d) diversify into fast-growing sectors and new asset classes; and (e) establish the Fund/Wealth Management Business via the acquisition of a CMS-licensed fund management company or the setting up of a fund management company in Singapore.