Dear Mr Yangzijiang, tmrw after u let go yr 2Q results, u r not restrained any more from any buyback action. U should do the necessary to signal to the market that your stock is worth much more.
First, yr 2Q results should be good. Next, u should fire with the missiles at yr disposal. How about buying 1 m shares of yourself?
Better than expected profit numbers from Yangzijiang. Credit Suisse this morning said: "We maintain our OUTPERFORM rating and target price of S$2.00. On 2011E P/E of 6.5x, Yangzijiang is trading at a 30% discount to regional peers."
DONG Ye Zong, the managing director of Cosco (Zhoushan) Shipyard Group Co Ltd, a unit of Cosco Corporation (Singapore), bought 60,000 shares in the Singapore-listed firm last Friday. He bought the Cosco Corporation (S) shares at 99.5 cents apiece - a low that the stock had not seen since April 2009.
Actually this is nothing compared to Yangzijiang's chairman Ren Yuanlin, who has bought about 2.2 million shares in Yangzijiang over the last few weeks. Yangzijiang Director Yu Kebing has also bought 300 thousand shares.
In addition to low valuations, Yangzijiang has 7.2 billion rmb in cash, while the management keeps buying.
For many well-run companies, P/E levels are now not much higher than March 2009 lows, because earnings have doubled or more since then.
ethan999, i agree that it is significant. What shareholders would like to see is the cash hoard being applied to a sustained, daily share buyback. YZJ has been slow to carry out this.
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