Yangzijiang Shipbuilding - OCBC Investment 2017-03-28: Still keen on investments

Yangzijiang Shipbuilding - OCBC Investment 2017-03-28: Still keen on investments YANGZIJIANG SHIPBLDG HLDGS LTD BS6.SI

Yangzijiang Shipbuilding - Still keen on investments

  • Yangzijiang Shipbuilding (YZJ) recently announced that one of its subsidiaries had subscribed for 30% equity interest in Jiangsu Nantong Yanhai Emerging Industrial Investment Fund with an authorized share capital of up to RMB300m, thereby making Nantong Yanhai an associate. 
  • The operating term of the fund is seven years, and its core business is related to industrial investment, venture investment and equity investment in small and medium sized privately-owned enterprises in emerging industries such as new materials, energy conservation and environmental protection, advanced manufacturing technology, health care and innovative consumption business. 
  • In Jan this year, a unit of YZJ also subscribed for a 32.8% equity interest in Wuxi Jinrui Zhonghe Investment Enterprise for RMB196.8m. The core business of Jinrui Zhonghe is related to investment holding with a paid up capital of up to RMB600m, and the move was meant to enhance management's expertise in cash redeployment. 
  • Based on these recent moves, YZJ still seems intent on parking money in investment funds, something it ventured into years ago. 
  • Maintain HOLD with S$0.96 fair value estimate.

Low Pei Han CFA OCBC Investment | http://www.ocbcresearch.com/ 2017-03-28
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 0.960 Same 0.960




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