3.5 cents in 2009 .....4.5 cents in 2010.... 6 cents for 2011?
Will YZJ increase its dividend payout so beautifully for Fy2011?
I read this morning an AmFraser report forecasting 6-c for final dividend.
The report said: " Valuations extremely compelling: YZJ is now trading at forward P/E of 4.3x, and given our dividend expectation of 6c this year, it currently yields 6.5%. P/B is 1.3x against its historical average of 3.3x, with an EV/EBITDA of 3.1x.
Maintain $1.60 FV and BUY: We continue to value YZJ at 8x FY11F P/E for a FV of $1.60. In one stroke, YZJ has increased future profitability while simultaneously reducing its overall risk by implementing three hedges against currency, steel price, and business risks. This is killing four birds with one stone."
with the stock price having risen to 99 cents on Friday, the yield is now 4.5% (based on last FY payout of 4.5 cents Sing). If it goes up to 6 cents as AmFraser predicts, then it's 6% which is fine. The stock price looks unlikely to run sharply above $1 for now as it needs a good breather. Risk-averse investors would not chase it because the dividend yield would be compressed.
GEnerally, there is a decline in orders - newbuilding orders (in dead weight tons) in China fell 52% last year. SEaspan contract is US$700m deliverable over 8 quarters in 2014-2015. How much of their options for another 18 vessels at another US$1.8bn will be exercised?
The sceptics are shorters. Ignore them. This is the best S-chips in SGX, strong financial statements, low debts, dedicated chairman who is frugal like Buffett and cares for shareholders. Lets hope it will reach $2 by year end.
Anyone went to the AGM? I couldnt but heard that about 200 shareholders were there -- they praised the management for the strong profit performance and higher dividends. Only thing is, they asked if YZJ regretted listing in Singapore? Strong business performance & Big market cap but the market only values it at PE of 6-7 X.
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