YZJ Shipbldg SGD    Last:2.97    +0.06

Cruising with the ship ..Yangzijiang

AGM coming... on 26 Apr 13... another 22 working days...

cheongsl      ( Date: 19-Mar-2013 12:12) Posted: I don't think they will let it run before the AGM.

 

Yzj has good ten years track records for it performance, again it delivered good result last year despite the shipping industries are experiencing one of the worst business cycle.
when worldwide economy is picking up, all cyclical stocks like commodities, shipping related will charge up… including YZJ …NOL…
Slow and steady win the race…

 

The placement of 330m warrants is a good thing. By issue the warrants the YZJ can generate S$18.15m for working capital and the said warrants will not be listed & quoted on SGX. The exercise price is around $1.50. I see no reasons why people so panic to dispose of the share immediately after the announcement is made. If the share price has reach $1.50 for those vested you will have make good profit if you have bought YZJ before the announcement or recently.

One question to ask is that who is going to pay $18m for the right if the party doesn’t have a confidence that the share price will hit higher than 1.50 latest by 29 Apr 2016. $18m is not small money.

Looking at monthly chart it seems consolidating for almost 10 months and believes it is bottoming now and good for accumulation.

Both MACD & Stochastic have turning up and once price crossed over 0.98 & 1.005 in extension then the ST we should able to see to close the falling window 1.085 in next two weeks.

The YZJ has proposed 5 cents dividend and the yield is good.

Have vested.

 

 

The 22 Feb 2013, the breakup is a messy one, not nice lah.

iPunter      ( Date: 23-Mar-2013 15:48) Posted: From 22 Feb 2013, it " Chiong Aaaaaaaaaarh!!!" to 1.00,     then slumped and remained down around  .93 two days later...       Yesterday, it " Chong Aaaaaaaarh!!!" to .97...                 If it can rise above 1.00 next week, then only it will be beautiful... cheongsl      ( Date: 23-Mar-2013 14:35) Posted: It is beautiful as it happen almost at the same time. This is not really that common to happen at the same moment. I don't quite get you about a month ago, as nothing happen a month ago. But two months ago, you can also see this type of beautiful breakdown.

 

Ohayo to all YZJ's fans ~

 

From 22 Feb 2013, it " Chiong Aaaaaaaaaarh!!!" to 1.00,

    then slumped and remained down around  .93 two days later...

      Yesterday, it " Chong Aaaaaaaarh!!!" to .97...

                If it can rise above 1.00 next week, then only it will be beautiful...

cheongsl      ( Date: 23-Mar-2013 14:35) Posted: It is beautiful as it happen almost at the same time. This is not really that common to happen at the same moment. I don't quite get you about a month ago, as nothing happen a month ago. But two months ago, you can also see this type of beautiful breakdown. iPunter      ( Date: 23-Mar-2013 13:52) Posted: I can't understand why sifu thinks the chart is beautiful... If you look at the chart, a month ago, a similar situation occurred,   and may who went in got burnt till " chao ta" ... Care to expain?

 

It is beautiful as it happen almost at the same time. This is not really that common to happen at the same moment. I don't quite get you about a month ago, as nothing happen a month ago. But two months ago, you can also see this type of beautiful breakdown.

iPunter      ( Date: 23-Mar-2013 13:52) Posted: I can't understand why sifu thinks the chart is beautiful... If you look at the chart, a month ago, a similar situation occurred,   and may who went in got burnt till " chao ta" ... Care to expain? cheongsl      ( Date: 23-Mar-2013 08:37) Posted: Is a nice chart technically. Price breakup, Volume breakup, CCI breakup, RSI breakup, MACD breakup and stochastic also breakup

 

I can't understand why sifu thinks the chart is beautiful...

If you look at the chart, a month ago, a similar situation occurred,

  and may who went in got burnt till " chao ta" ... Care to expain?

cheongsl      ( Date: 23-Mar-2013 08:37) Posted: Is a nice chart technically. Price breakup, Volume breakup, CCI breakup, RSI breakup, MACD breakup and stochastic also breakup Flyordie      ( Date: 22-Mar-2013 11:49) Posted: Seems like the buying interest is back... We will see....

 

Both MACD & Stochastic have turning up and once the share price has crossed over 0.98 & 1.005 then the ST we should able to see to close the falling window 1.085 in next two weeks.

Looking at monthly chart it seems that YZJ has consolidating for almost 10 months and is bottoming.

The YZJ has proposed 5 cents dividend resulted Yield not bad.

Good time for accumulation.

Have vested.

 

 

Is a nice chart technically.

Price breakup, Volume breakup, CCI breakup, RSI breakup, MACD breakup and stochastic also breakup

Flyordie      ( Date: 22-Mar-2013 11:49) Posted: Seems like the buying interest is back... We will see....

 

Actually impairment provisions are good for investors esp those longer term ones because a provision could be written back just like writing back bad debts provision (if over provided) at a later date usually the next accounting year. A write back adds back to the overall " revenue or respective item" since a write back cancels the original provision. 

WanSiTong      ( Date: 22-Mar-2013 11:51) Posted: no problem if  the accounts are prepared  consistenly according to their accounting policies. Bopanha      ( Date: 22-Mar-2013 11:37) Posted: Sometimes I feel that making an impairment loss for public companies is just balancing the books in order that taxes are not too high, right? If seen from this angle, impairment entries are good or bad?   I no accountant, so need some ideas, hehehe.

 

sorri ! Typo error.. should be consistently !!

WanSiTong      ( Date: 22-Mar-2013 11:51) Posted: no problem if  the accounts are prepared  consistenly according to their accounting policies. Bopanha      ( Date: 22-Mar-2013 11:37) Posted: Sometimes I feel that making an impairment loss for public companies is just balancing the books in order that taxes are not too high, right? If seen from this angle, impairment entries are good or bad?   I no accountant, so need some ideas, hehehe.

 

no problem if  the accounts are prepared  consistenly according to their accounting policies.

Bopanha      ( Date: 22-Mar-2013 11:37) Posted: Sometimes I feel that making an impairment loss for public companies is just balancing the books in order that taxes are not too high, right? If seen from this angle, impairment entries are good or bad?   I no accountant, so need some ideas, hehehe.

 

Seems like the buying interest is back...

We will see.... 

 

Sometimes I feel that making an impairment loss for public companies is just balancing the books in order that taxes are not too high, right? If seen from this angle, impairment entries are good or bad?   I no accountant, so need some ideas, hehehe.

 

Impairment Provisions:

As at 31/12/2011 : RMB 554.2 M

Additional provisions made in 2012 : RMB 99.2 M

As at 31/12/2012 : RMB 653.3 M

darkknight      ( Date: 22-Mar-2013 08:01) Posted: That is for Q4 and not whole FY and  does not  indicate actual write down of asset or actual negative impact to cash flow right? Conservative provision is healthy  as it can somewhat  cushion near term bottom line impact, provided it is written back and not written down at the end.   WanSiTong      ( Date: 21-Mar-2013 16:08) Posted: Extraded from para 8 of YZJ 2012 Full yr announcement : Other gains/(losses) - net 其 他 利 益 /(損 失 ) - 淨 值 Net other gains, which comprises mainly foreign exchange related gains/ (loss) and impairment provision for HTM investments, recorded a loss of RMB21.3 million in 4Q 2012 from loss of RMB107.4 million in 4Q 2011. The recorded net loss of RMB21.3 million mainly due to additional of RMB99.2 million impairment provisions made for HTM Investment at end of 2012. As at 31 December 2012, the provision is RMB 653.3 million. 其 他 利 益 主 要 包 括 外 匯 相 關 損 益 以 及 對 持 有 至 到 期 金 融 資 產 所 作 的 減 值 準 備 計 提 ， 與 2011年 第 四 季 度 的 1.074 期 金 融 資 產 減 值 準 備 元 人 民 幣 。 As at 31/12/2011, impairmrnt provisions was RMB 554.2 million. (pls refer to Notes 16 of the 2011 Annual Report) 億 元 虧 損 相 比 ， 2012年 第 四 季 度 ， 其 他 利 益 凈 虧 損 人 民 幣 2130萬 元 。 虧 損 主 要 源 於 增 加 對 持 有 至 到 9920萬 元 人 民 幣 ， 截 止 2012年 12月 31日 ， 持 有 至 到 期 金 融 資 產 減 值 準 備 共 計 6.533億

 

More information on the htm Financial Assets :

These held-to-maturity financial products are investments in banking products offered by Chinese banks and trust companies and are used to finance Chinese corporations and entities in diverse sectors, such as real estate projects, manufacturing companies and local government projects.

 

 

Such products yielded an average return of about 10% to 15% a year. Relative to this, cost of borrowing is at 5% for Rmb and 2% to 3% for USD.

 

.

 

Depending on how the prospective yields of held-to-maturity investments change relative to the cost

 

of borrowing, YZJ management do not rule out the possibility of deploying funds from their held-to-maturity investment portfolio   to fund their   working requirements as they expand their shipbuilding ctivities.

 

 

All of these investments are secured against various collaterals such as listed shares, land titles and guarantees. The Group’s policy is to insist that the collateral to debt coverage ratio to be no less than 2 times and the collaterals have to be unencumbered. The Group has not experienced any default of such investments since it started investing in these products in 2008.

 

 

The carrying amount of these assets is reduced through the use of an impairment allowance account which is calculated as the difference between the carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. When the asset becomes uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are recognised against the same line item in profit or loss.

 

 

The allowance for impairment loss account is reduced through profit or loss in a subsequent period when the amount of impairment loss decreases and the related decrease can be objectively measured. The carrying amount of the asset previously impaired is increased to the extent that the new carrying amount does not exceed the amortised cost had no impairment been recognised in prior periods.

 

 

The Group follows the guidance of FRS 39 in determining when the financial assets, held-to-maturity are considered impaired. Significant financial difficulties of the counterparty, probability that the counterparty will enter bankruptcy, and default or significant delay in payment are objective evidence that these financial assets, held-to-maturity is impaired. Allowance for impairment was provided based on   management’s assessment of the credit history of its counter-parties, and that of the market conditions. Refer to Note 35(b) of 2011 Annual Report on the credit risk information in relation to these financial assets.

 

WanSiTong      ( Date: 20-Mar-2013 13:56) Posted: Extraded from YZJ annual Report 2011 (2012 is not availiable), Pg 56- Significant Accounting policies : (iii) Financial assets, held-to-maturity Financial assets, held-to-maturity are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group’s management has the positive intention and ability to hold to maturity. If the Group were to sell other than an insignificant amount of financial assets, held-to-maturity, the whole category would be tainted and reclassified as available-forsale. They are presented as non-current assets, except for those maturing within 12 months after the balance sheet date which are presented as current assets. (iv) Financial assets, available-for-sale Financial assets, available-for-sale are non-derivatives that are either designated in this category or not classified in any of the other categories. They are presented as non-current assets unless management intends to dispose of the assets within 12 months after the balance sheet date. (b) Recognition and derecognition Regular way purchases and sales of financial assets are recognised on the trade-date – the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a financial asset, the difference between the carrying amount and the sale proceeds is recognised in profit or loss.Any amount in the fair value reserve relating to that asset is transferred to profit or loss. (c) Initial measurement Financial assets are initially recognised at fair value plus transaction costs except for financial assets at fair value through profit or loss, which are recognised at fair value. Transaction costs for financial assets at fair value through profit or loss are recognised immediately as expenses. (d) Subsequent measurement Financial assets, available-for-sale and financial assets at fair value through profit or loss, are subsequently carried at fair value. Loans and receivables and financial assets, held-to-maturity are subsequently carried at amortised cost using the effective interest method. cheongsl      ( Date: 19-Mar-2013 07:30) Posted: Hi dippyboy, I don't quite get you what do you mean by 11 rmb htm asset is like CAO, what do you mean  by 6% interest as this seems to be different from their financial report? Maybe you can provide your proof for your wording why with htm asset is big time speculating? Most company have held to maturity investment, especially in building industries. They will need vest amount of raw material, and the project is not complete within a short period. Eg. when the contract is sign, the fabrication and manufacturer might take 1 years later to start. Thus to avoid the contract from getting into loss, the company will need to hedge the material price for 1 year, so that the price of material go up the company will still get the material at the same price as 1 year ago, if it go down the company might consider loss the hedging and purchase directly outside or just complete the hedging sales. Similar go to foreign currency, hedgeing might also required. Every normal individual also have held to maturity investment, insurance, fixed deposit, saving insurance, etc

 

That is for Q4 and not whole FY and  does not  indicate actual write down of asset or actual negative impact to cash flow right? Conservative provision is healthy  as it can somewhat  cushion near term bottom line impact, provided it is written back and not written down at the end.

 

WanSiTong      ( Date: 21-Mar-2013 16:08) Posted: Extraded from para 8 of YZJ 2012 Full yr announcement : Other gains/(losses) - net 其 他 利 益 /(損 失 ) - 淨 值 Net other gains, which comprises mainly foreign exchange related gains/ (loss) and impairment provision for HTM investments, recorded a loss of RMB21.3 million in 4Q 2012 from loss of RMB107.4 million in 4Q 2011. The recorded net loss of RMB21.3 million mainly due to additional of RMB99.2 million impairment provisions made for HTM Investment at end of 2012. As at 31 December 2012, the provision is RMB 653.3 million. 其 他 利 益 主 要 包 括 外 匯 相 關 損 益 以 及 對 持 有 至 到 期 金 融 資 產 所 作 的 減 值 準 備 計 提 ， 與 2011年 第 四 季 度 的 1.074 期 金 融 資 產 減 值 準 備 元 人 民 幣 。 As at 31/12/2011, impairmrnt provisions was RMB 554.2 million. (pls refer to Notes 16 of the 2011 Annual Report) 億 元 虧 損 相 比 ， 2012年 第 四 季 度 ， 其 他 利 益 凈 虧 損 人 民 幣 2130萬 元 。 虧 損 主 要 源 於 增 加 對 持 有 至 到 9920萬 元 人 民 幣 ， 截 止 2012年 12月 31日 ， 持 有 至 到 期 金 融 資 產 減 值 準 備 共 計 6.533億 darkknight      ( Date: 21-Mar-2013 14:58) Posted: Is  there a write back on the provision for impairment as the security matured?   The 2012 provision is half that of 2011 despite increases in the HTM assets. Not an expert in reading the cash flow statement, is the cash flow positive from the HTM deployment? If not, I will be worried as it contradicts the intention of using HTM to fund dividend payouts

 

Still waiting for the warrant exercise date to start, which is next thursday (28March 2013). I don't think citi group will spend so much money and just let it seat there. But they will need to work harder, as the warrant is based on RMB to convert, and currently Singapore dollars is getting weaker compare to RMB, they need to at least push higher then 1.70 to make it attactive. The higher they push the more they can sell for the warrant.

WanSiTong      ( Date: 21-Mar-2013 10:39) Posted: hen tat kaki hen tak  0.945 / 0.950 for quite sometime !!?

 

Extraded from para 8 of YZJ 2012 Full yr announcement :

Other gains/(losses) - net 其 他 利 益 /(損 失 ) - 淨 值

Net other gains, which comprises mainly foreign exchange related gains/ (loss) and impairment provision for

HTM investments, recorded a loss of RMB21.3 million in 4Q 2012 from loss of RMB107.4 million in 4Q 2011.

The recorded net loss of RMB21.3 million mainly due to additional of RMB99.2 million impairment provisions

made for HTM Investment at end of 2012. As at 31 December 2012, the provision is RMB 653.3 million.

其 他 利 益 主 要 包 括 外 匯 相 關 損 益 以 及 對 持 有 至 到 期 金 融 資 產 所 作 的 減 值 準 備 計 提 ， 與 2011年 第 四 季 度 的

1.074

期 金 融 資 產 減 值 準 備

元 人 民 幣 。

As at 31/12/2011, impairmrnt provisions was RMB 554.2 million. (pls refer to Notes 16 of the 2011 Annual Report)

億 元 虧 損 相 比 ， 2012年 第 四 季 度 ， 其 他 利 益 凈 虧 損 人 民 幣 2130萬 元 。 虧 損 主 要 源 於 增 加 對 持 有 至 到 9920萬 元 人 民 幣 ， 截 止 2012年 12月 31日 ， 持 有 至 到 期 金 融 資 產 減 值 準 備 共 計 6.533億

darkknight      ( Date: 21-Mar-2013 14:58) Posted: Is  there a write back on the provision for impairment as the security matured?   The 2012 provision is half that of 2011 despite increases in the HTM assets. Not an expert in reading the cash flow statement, is the cash flow positive from the HTM deployment? If not, I will be worried as it contradicts the intention of using HTM to fund dividend payouts. cheongsl      ( Date: 20-Mar-2013 21:21) Posted: Note your sources.