Yangzijiang Shipbuilding (Holdings)

[weijian]

I have noticed that announcements of expansion CAPEX generally comes at the peak of the booming market (Eg. Seatrium's announcement of a greenfield shipyard in Brazil and consolidation of Spore ops at Tuas came when it was announcing a new rig order every few months). Nonetheless, this is an expansion of current capacities and doesn't look like a big one. We could probably see what happens down the road.

https://links.sgx.com/FileOpen/Corporate...eID=809822

Maybe not a big one compared to profit but RMB3B is about 1/3 to 40% of cost of fixed assets exclude vessels. China getting is not getting cheaper for sure.

Well, I suspect earlier investments into the shipyards, looked expensive then. Therefore, 10years down the road, the current 3billion investment will probably look cheap?

In time to come, could the vessels on the PPE side be divested to entities related to/brokered by YZJFH? With YZJFH doing more vessel investments, YZJSB will probably free up capital which were originally required for financing its own customers.