The clarification should alleviate some concerns over the shipyard’s involvement in the investigation. Day-to-day operations seem unaffected at this juncture. CEO Mr Ren Letian is capable to run the company given that he had been rotated to manage various divisions of the shipyard for nearly 10 years prior to his appointment as CEO in Mar-2015.
Order win momentum, which was expected to pick up strongly over the next few months, would be crucial, serving as a confidence booster on the yard’s operations and ability to win new contracts.
Chairman’s assistance in the investigation could remain an overhang and cause volatility in share price until the dust settles. Having said that, share price decline appears overdone with 25% plunge over 2 days, considering yards’ non-involvement in the investigation as well as intact operations and fundamentals of the group at this point.
Another "rumour" and the share price got hammered but YZJ has launched share buyback. Let's see if company would be buying more on Monday and over the week. Their broker must be very happy! YZJ did 10 buybacks in 2018 , only 1 so far in 2019.
Share price 91.5 cents is now below the company's net cash level (including financial assets) of 95 cents. No value given to its shipyard assets, its business and its prospects. Hmm....
