Yangzijiang Financial Holding

[Squirrel]

The company has been doing aggressive sharebuyback since the release of FY results, with at least 6 million in shares bought back during each trading day

With a mandate to buy back 395 million shares (10% of 3,950 million shares), it looks like the company will max its mandate in another 60 trading days time. However, the value of the comoany has plunged 10% and it might be due to a major shareholder disposing its stake. The company's aggressive share buyback does seem a good sign that they find it undervalued

i don't quite understand why they are not even more aggressive on the buyback, why buy only 6mil shares when they can easily buy twice/thrice of that?

The slower the buyback the less upward pressure on prices. 

other reason could be lack of cash flow or they are just supporting the stock price so as not to let it fall lower etc.. 

They could also be buying back stock to dispense as employee stock options later down the road.

Personally I don’t think it’s a lack of cashflow. If you read into the announcement, it states that they have already a lot of cash in SG, more than twice the required amount for the $200m share buyback program.

I believe the way they are conducting the share buyback is very much in lieu of the nature of how they go about their main business. They are investment professionals. They seek not to directly buoy up the price of the shares with big buyback volume. They seek to buy back shares at the lowest price possible. And that’s evident in the slow but consistent volumes after the share price hits below 40 cents after release of results (after the restricted period before results).

I am happy with how they are doing it now. I have a limit to my allocation so I can’t keep adding on the way down or more at this level. However, them buying back shares at this price has a knock on effect akin to “averaging down” in my stead. It’s buying back at one third of NAV! I will be really really happy if they completed the share buyback all between $0.36 to $0.40. That’s going to help the fundamental value of my holdings significantly.