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.