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Weighing the speed and magnitude, it does not make sense to give up 81.8% returns in a few years (45%/55%).

YZJ Shipbuilding has good cashflow and even if it waits for 5 years for the collateral to be seized and force sold. It is still a wonderful annualised returns. I am more inclined to believe that the collateral fell in value. Let's not forget the primary clients of DI for YZJ are not the state owned real estate developers/companies; they are the weaker private individuals. It may be that YZJ Shipbuilding held the worst of all debts where debt recovery would not yield 100% and hence it took such debts and not spin off to YZJFH.

However, this shows the collateral value held by YZJFH (especially land) is not "strong". Real Estate in China is going down because the population is declining and the supply of houses is too much. The property speculative element among the population was killed off. These diminish the value of real estate land banks that any company is holding.
2023 1H FAQ
GOOD communication from management

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