International trading as additional revenue stream. I noticed that international traders from China have established offices in Singapore recently... Might due Singapore as offshore RMB center...
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The Board of Directors (the “Board”) of Yangzijiang Shipbuilding (Holdings) Ltd. (“YZJ” or the “Company”) wishes to announce that Yangzijiang International Trading Pte. Ltd. (“YITPL”) has been incorporated in the Republic of Singapore with a registered capital of US$1 million, thereby making it as the 100% wholly-owned subsidiary of the Company.
YITPL will be involved in international trade activities which includes but not limited to the trading of shipbuilding related materials/supplies and commercial vessels. The rationale of the incorporation of YITPL is to optimise the Group’s business operating model and lower the funding costs through broadening its existing trading platform, tapping on the Singapore’s developed capital markets and logistics infrastructure. In the long run, the investment is also expected to be an additional revenue stream for the Group with progressive expansion of its business to third parties.
... http://infopub.sgx.com/FileOpen/Announce...eID=255276
(11-09-2013, 03:10 PM)Greenrookie Wrote: An detailed research report by CIMB. (See attached)
So that explains the volume today, didn't know research report can wield so much influence
Punters and syndicates were using the report as an excuse to push up the stock price. They had been accumulating the shares at depressed levels and had started to push up the stock price.
Yangzijiang Shipbuilding Holdings, China’s No. 2 private shipyard, jumped by the most since October 2011 as Credit Suisse Group AG and DBS Group Holdings raised their ratings on optimism orders will rise.
Yangzijiang climbed 6.1% to $1.04 at the close in Singapore. More than 54 million shares changed hands, six times the average trading volume in the past three months, according to data compiled by Bloomberg.
“With its strong financial position and low production cost, we expect Yangzijiang to benefit disproportionately from a recovery in newbuild orders,” Credit Suisse analysts Gerald Wong and Louis Chua wrote in a report today. The brokerage raised its rating to outperform from neutral and lifted its share-price forecast to $1.30 from $1.10.
Yangzijiang won US$1.2 billion ($1.52 billion) of orders so far this year and will likely reach $2 billion by year-end, according to the report. The company may win another US$2.5 billion of contracts in 2014, it said.
ORDERFLOW MOMENTUM
The orderflow is gaining momentum due to the low price for new vessels and increasing freight rates, DBS analyst Ho Pei Hwa wrote in a report today. The Baltic Dry Index, which measures the cost of shipping commodities from copper to corn, climbed 4.3% yesterday in London to the highest since January 2012.
“This will likely sustain in the coming three to six months given the current strong enquiry levels and optimism of shipping recovery,” Ho said. “A series of shipyard closures and/or capacity cuts in China is deemed positive.”
Consolidation starting, more shipyards especially private and small ones, would go the way of dodo. the pie isn't large enough at the first place, anyway.
Perhaps, more to divert demand to "local industries" too, through the use of financial leverage and taxation??, many china shipping companies are going to Korean yards... Not sure if that will amount to anti-trading thou..
life goes in cycles, predictable yet uncontrollable; just like the markets, but markets give you a second chance
The policy bank that supports YZJ is China Development Bank Corporation. The company has Secured Term Loan Facilities with the bank for US$150 mil, or more than RMB 900 mil.
The interest charged is < 1x PBOC benchmark rate, while the HTM's effective return is 1.5x-2x PBOC benchmark rate.
The shipbuilding segment will continue be supported by policy bank's low interest credit, at least in the next few years, IMO
On top of the credit support, the shipbuilding segment also enjoying additional 1%-2% in margin, with the 20% prepayment, by recycling it via HTM segment.
25-09-2013, 09:14 PM (This post was last modified: 25-09-2013, 09:44 PM by CityFarmer.)
As shareholder, I'm pleased to hear that the 10,000 TEU containership is launched successfully. Congrat Mr. Ren, and keep it up...
As usual, after the analysts attended the ceremony, we shall see favorable reports from them, in near future.
Yangzijiang launched China’s first ever 10,000 TEU containership
Yangzijiang Shipbuilding (Holdings) Limited (“Yangzijiang” or “the Group” or “扬子江船业控股有限公司”), one of PRC’s leading and most enterprising shipbuilder listed on the SGX Main Board, is pleased to announce that today, the Group has launched its first ever 10,000 TEU containership from its Jiangsu New Yangzi Shipbuilding Co., Ltd. (“New Yangzi Yard”). This is also the first time ever any Chinese shipyard has built and launched a 10,000 TEU containership.
Till date, the Group has in total 11 of the 10,000 TEU vessels on its order book with options outstanding to get a further 14 more of such vessels. The 11 vessels on the order book came about (1) as the Group through its subsidiaries, New Yangzi Yard and Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd. (“Xinfu Yard”) entered into shipbuilding contracts worth US$0.7 billion with Seaspan Corporation on 8 June 2011 to build seven units of 10,000 TEU containerships with options for additional eighteen units of identical vessels to be built; and (2) as Seaspan Corporation exercised the options on 24 January 2013 to build additional four units of the 10,000 TEU containerships with New Yangzi Yard and Xinfu Yard with total contract value of US$0.36 billion.
These 11 newly developed container vessels which are fuel-efficient and eco-friendly in nature are scheduled for deliveries in 2014 and 2015. The vessels’ proprietary design meets the current demand for larger capacity vessels with lower emissions.
To celebrate the launch of the Group’s first ever 10,000 TEU containership, the Group kept a launch ceremony this morning at its New Yangzi Yard and for the ceremony even invited research analysts from Singapore, Hong Kong and Shanghai, to attend the launch ceremony. A total of 11 analysts attended the launch ceremony, followed by yard visits to New Yangzi Yard and Xinfu Yard.
Yangzijiang applies to enter private banking sector
Shanghai: As China has loosened the regulations on private banking sector and relevant policies are about to be introduced, many private companies are planning to enter the sector.
According to Jiangsu Provincial Government, it has received applications from six local private companies including Shagang Group and Yangzijiang Shipbuilding to set up their own banks.
Yangzijiang Shipbuilding reported a net profit of RMB1.52bn in the first half of this year. [25/09/13]
Although there is no guaranteed of profitability, at least it will mean they are stepping out of the shadows to the open, any rules to clamp down on shadow banking will not affect them as much.
life goes in cycles, predictable yet uncontrollable; just like the markets, but markets give you a second chance
(26-09-2013, 10:38 PM)Greenrookie Wrote: Yangzijiang applies to enter private banking sector
Shanghai: As China has loosened the regulations on private banking sector and relevant policies are about to be introduced, many private companies are planning to enter the sector.
According to Jiangsu Provincial Government, it has received applications from six local private companies including Shagang Group and Yangzijiang Shipbuilding to set up their own banks.
Yangzijiang Shipbuilding reported a net profit of RMB1.52bn in the first half of this year. [25/09/13]
Although there is no guaranteed of profitability, at least it will mean they are stepping out of the shadows to the open, any rules to clamp down on shadow banking will not affect them as much.
The HTM investment has been operated by partnering financial intermediaries e.g. local banks. So strictly speaking, it is open, and operates within the banking ecosystem in China.
May be you refer to micro-credit business. Yes, YZJ is trimming down the micro financing business. One of the two micro financing subsidiaries, was disposed in FY2012, and the asset has been scaled down quite a bit in FY2013. Is it preparing for the private license?
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