16 April 2014

Yang Zi Jiang - Transformation in Progress - Apr 2014

I believe that some investors would still shy away from S-Chip, however, as one of the most established Chinese companies under Chinese businessman Mr. Ren with proven financial record since listed in SGX for more than 5 years, I do believe that Yang Zi Jiang is still one of the good companies listed here.

The company revealed its long term plan to diversify its business to real estate and logistic during AGM this year. I believe that this is a good move as it is having a huge cash piles and it could use it wisely on growing this money in longer run. Nonetheless, as this is a new venture, I believe the underlying business risk is higher as compared to its core business - Ship building.

Nonetheless, I believe that it can still maintain its 5 cents dividend for long run. Given the current share price of around S$1.10, it implies to about 4.5% dividend yield. I will keep it in my watch list for monitoring purpose.

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