04-04-2014, 01:11 PM
(04-04-2014, 10:08 AM)CityFarmer Wrote: [ -> ](03-04-2014, 05:52 PM)Greenrookie Wrote: [ -> ]City farmer, perhaps can u share how u research and the questions u asked. Jiangsu where YZJ is based is one of the richest but also heavily geared province too, I read somewhere (can't remembers where) that there is a company at jiangsu ( coal or property company, can't remember) that can't pay interest.
My views on the YZJ's investment and related questions/answers were already posted previously in this thread.
May be a more relevant one is , What if I am wrong?
My answer in my record was
Base on shipbuilding business outlook, and discounted the contribution from the investment on its margin, a conservative estimation of shipbuilding segment's earning was 2800 mil yuan in FY14. With a PE of 7 gives 19.6 billion yuan. With share base of 3832 million shares, it is about 5 yuan per share, or approx $1.05 per share.
If I am right on the valuation, I got the investment segment for free with $1.05 per share.
(vested)
My thoughts were:
In the case whereby some of its HTM defaults, the number impact on YZJ should be manageable since most of the loans are to SOEs. If many big companies and SOEs are failing, every counter in SGX should see a bloodbath, never mind yZJ.
What I cannot calculate is the sentiments impact on price of YZJ. Just a 10% defaults and 5% write off would do far greater damage than the number of loss. I thought then it might be a great time to accumulate with good MOS.
Just a thought, not saying it will happen. I rather it not happen as my guts must be intact then. Still vested with same amount.