Yangzijiang Shipbuilding (Holdings)

http://www.tradewindsnews.com/weekly/340...r-in-China

(15-07-2014, 08:54 AM)Ken123456 Wrote: http://www.tradewindsnews.com/weekly/340...r-in-China

The link need a registration to read, thus make it unusable for most of us.

You may want to post a brief summary, in order to make similar post useful in the future

Thanks

Regards
Moderator

Iranians linked to potential 10-ship kamsarmax order in China

A potential $322m contract for 82,000-dwt bulkers from a mysterious Middle East private-equity fund could see Iran investing again in new ships

Singapore-listed Chinese shipbuilder Yangzijiang Shipbuilding Holdings is reportedly close to receiving a 10-ship kamsarmax bulker order worth $322m from an undisclosed Middle East private-quity fund that could mark Iran’s return to the newbuilding scene.

Industry insiders say discussions for the newbuildings are in the final stages. The order is said to involve six 82,000-dwt geared vessels and a further four non-geared bulkers of the same size. Deliveries are scheduled for between the second half of 2016 and first quarter of 2017.

TradeWinds is told that Yangzijiang is seeking around $31m for a standard kamsarmax newbuilding and is asking for an additional $2m per ship if they are geared.

Of considerable note are indications from informed industry sources suggesting that the order is Iranian-linked. Most believe that Islamic Republic of Iran Shipping Lines (IRISL) will be the end-user. Some sources suggest that a former senior IRISL executive is involved in the newbuilding project.

Yangzijiang officials were unwilling to shed any light on the parties behind the order, citing confidentiality clauses, when contacted by TradeWinds this week.

If the suggestions that either IRISL, or an affiliated party, is behind the order, are correct, it would mark the first time that the company, or an associated entity, has ordered ships since being hit by sanctions several years ago.

IRISL was in the process of ordering large numbers of vessels at various Chinese yards prior to being sanctioned.

Although China has placed no restrictions on the country, the Iranians have had little need to order new ships in the interim as the sanctions severely curtailed Iran’s involvement in global trade, as well as IRISL’s ability to carry non-Iranian-related cargoes.

However, after numerous bulker orders were cancelled because of payment problems brought on by banking restrictions, IRISL sorely needs larger bulkers to carry the country’s large-scale iron-ore imports, as well as to handle its growing dry commodity exports, such as gypsum and copper.

Should the Middle Eastern private-equity fund firm up the contract at Yangzijiang, it would be the fourth party to have signed up for a series of newbuildings at a Chinese yard.

This should be a good news... But recently yzj share price has been trending down, wondering why?

(15-07-2014, 09:59 AM)desmondxyz Wrote: This should be a good news... But recently yzj share price has been trending down, wondering why?

Mr. Market is voting down the recent "perceived change of strategy" of the company, from a 5-segments Integrated Marine Service Provider, back to a pure shipbuilding play.

It is clear that the HTM product will be withdrawn, but I am waiting further indicators for other segments, from the upcoming next quarter report.

It must be a significant incentive that drive the company to change its existing structure.

(vested)

Hmm.. cF, I thought the withdrawal of HTM will not be a complete one, my SPECULATION, is the transfer of HTM to one of its investment vehicle that gain control of listed company and do a restructuring or reverse IPO. YZJ will
Most hold a significant stake in this new company. The other segments like property... They are still intact right? Or I missing something


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(15-07-2014, 11:41 AM)Greenrookie Wrote: Hmm.. cF, I thought the withdrawal of HTM will not be a complete one, my SPECULATION, is the transfer of HTM to one of its investment vehicle that gain control of listed company and do a restructuring or reverse IPO. YZJ will
Most hold a significant stake in this new company. The other segments like property... They are still intact right? Or I missing something


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It is a speculation, base on the announcement in a previous post.

http://www.valuebuddies.com/thread-588-p...l#pid86717

YZJ will dispose of its property development and metal trading biz at par value (210M RMB) and invest 0.5M RMB in a shipyard storage handling services company.

http://infopub.sgx.com/FileOpen/Announce...eID=305358

(Vested)

(15-07-2014, 06:11 PM)Tiggerbee Wrote: YZJ will dispose of its property development and metal trading biz at par value (210M RMB) and invest 0.5M RMB in a shipyard storage handling services company.

http://infopub.sgx.com/FileOpen/Announce...eID=305358

(Vested)

Back to the core, should be a positive news i suppose.

(15-07-2014, 06:11 PM)Tiggerbee Wrote: YZJ will dispose of its property development and metal trading biz at par value (210M RMB) and invest 0.5M RMB in a shipyard storage handling services company.

http://infopub.sgx.com/FileOpen/Announce...eID=305358

(Vested)

The shift of the company strategy is getting clearer. Property segment is out, the only property investment left is the redevelopment of the old yard.

More disclosure will come, i presume

(vested)