Yangzijiang Financial Holding

[dreamybear]

At current share price. It would still be a bargain even if ALL of the allowance for impairment are realized and that ALL of the NPL are written off. China real estate and to a large extent, the overall chinese economy is in bad shape. On the ground, things are worse than what is reported.

I am not sure whether it's a "bargain" for OPMI; I believe it's a bargain if one buys a controlling stake at the current share price. Notwithstanding the mkt can remain irrational for long period of time saying, it is gd for OPMI only if the mkt is willing to price it much higher in the future(considering things like risks, opportunity costs). 

Will it happen ? Well, I don't know but I think we can draw some reference from the long term valuations of the China big banks.

Although the context of the below post is different(i.e. privatization), I believe the idea still applies here.  

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"...Buying at 60-70% NAV does not give a margin of safety..."
https://www.valuebuddies.com/thread-9588...#pid167931