YZJ Fin Hldg    Last:0.225   -

YZJFH - potentially rewarding

Managed add more at 0.29, pretty happy with the price. Since I got my initial lot at 0.34 about 3 years ago.

pasttime      ( Date: 27-Feb-2026 15:02) Posted: price is at near low.  q even lower to buy. at closing see can steal chicken if shorts try to force it down again. at this price with a 3 years horizon is a steal. tonight report will tell short term this is black beauty or another donkey.

 

price is at near low.  q even lower to buy.
at closing see can steal chicken if shorts try to force it down again.
at this price with a 3 years horizon is a steal.
tonight report will tell short term this is black beauty or another donkey.

 

Thank you volvo125 for your clarification.

volvo125      ( Date: 26-Feb-2026 18:54) Posted: Refer to pg 17 1H25 ppt :  (1) Improve Liquidity - Divest underperforming onshore assets to strengthen liquidity,  (2) Capital Reallocation Recycle proceeds to achieve a more balanced geographical portfolio, (3) Seek Growth Pursue growth in SEA through: &bull Private Credit &bull Wealth Management &bull Co-investment opportunities &bull Selective equity opportunities With YMD already been carved out from YFH book and safe to cruise on its own to preserve its rightful valuation without YFH business decision infererence, I think YFH is now serious in executing its post spin off growth strategies as mapped out in the 1H25 ppt, 1st step to first divest out all its NPL so that the lockout capital could be unlocked and recycled in 2nd step to again allocate 50:50 SG/China (YFH likely need to initially retain ~50% capital in China due to China capital flow control issue), and then later to 3rd step to seek growth in all those highlighted domains. I suspected YFH has tested the judicial auction or similar path to try divest off the net $497m NPL as at 1H25, and then realised the book value net of its existing provisions is still unfortuntately way above what the potential counter parties are willing to pay. The substantial proviisons estimated likely > $120m is likely the gap to close the deral and cut loose the balanced toxic NPL. So, do not expect there will be future write backs from the NPL provisions (the existing $132m + the new $xxxx m) as these provisions would likely be fully used to cut loose the NPL and recover back the residual cash. RenYL has openly and repeatedly during the past 2 AGMs reiterated his commitment to all the shareholders present to fully sort out the NPL by FY26. I believe he meant what he had said. The estmated ~$1.9B NAV will be lowered by the new provisions ( > $120m) expecting to be burnt off to fully cut off the NPL. YFH can then move on with a clean slate to step 2 and 3 in a new chapter. YFH has $560m cash as at 1H25, with ~$161m in RE, and it could choose to pay a token dividend if RenYL wishes to reward the shareholders. Do not place too much hope on this as YFH has a policy to pay out 40% from NPAT, not from losses, even though the FY25 losses seems extraordinary. This is only my speculationn, and I hope I am correct. A new YFH without the NPL burden is certainly the right way to go. pkli899      ( Date: 26-Feb-2026 16:34) Posted: Btw, making loss due to provision means in the event money get collected, can write back. Only write off then is actual loss. Not so bad la.

 

Going back to square one. Around 0.255

 

Yangzijiang Financial falls 14.5% to 2-year low on expected reversal into red
It expects to post losses for its second half and full year
[SINGAPORE] Yangzijiang Financial : YF8 -13.04% shares fell on Thursday (Feb 26) morning on news of the group&rsquo s expected loss for its second half and full year.
As at 9.18 am, the counter dropped as low as S$0.295, 14.5 per cent or S$0.05 below its latest closing price on Wednesday of S$0.345, with close to 25.5 million shares changing hands. This marked its lowest price in more than two years, as it last traded below this price in October 2023.
The company on Wednesday said it expects to post a loss for its second half and full fiscal year. This would mark a reversal into the red from its FY2024 net profit.
The projected declines were attributed to the recognition of substantial credit loss allowances, after a &ldquo comprehensive review&rdquo of the group&rsquo s debt investment portfolio.

 

Aligning with global standards, Yangzijiang Shipbuilding has prioritized the design and building of vessels with high energy efficiency. To achieve this, Yangzijiang Shipbuilding shows continuous efforts in (1) increased usage of renewable energy, (2) investments in R& D and digital transformation, (3) cost savings in processes and materials, and (4) renewable material utilisation. These efforts are across entire shipping value chain from the yard to ship recycling.

At YZJ Financial, we are looking forward to continuing our journey in ESG by building on the past and future experience of Yangzijiang Shipbuilding under our sustainable finance agenda.

 

you are quite right ... to divest off the net $497m and reassess the portfolio risk. that' s the reason why no SBB even though there is a mandate to do so ...
 

 

Refer to pg 17 1H25 ppt :  (1) Improve Liquidity - Divest underperforming onshore assets to strengthen liquidity,  (2) Capital Reallocation Recycle proceeds to achieve a more balanced geographical portfolio, (3) Seek Growth Pursue growth in SEA through: &bull Private Credit &bull Wealth Management &bull Co-investment opportunities &bull Selective equity opportunities

With YMD already been carved out from YFH book and safe to cruise on its own to preserve its rightful valuation without YFH business decision infererence, I think YFH is now serious in executing its post spin off growth strategies as mapped out in the 1H25 ppt, 1st step to first divest out all its NPL so that the lockout capital could be unlocked and recycled in 2nd step to again allocate 50:50 SG/China (YFH likely need to initially retain ~50% capital in China due to China capital flow control issue), and then later to 3rd step to seek growth in all those highlighted domains.

I suspected YFH has tested the judicial auction or similar path to try divest off the net $497m NPL as at 1H25, and then realised the book value net of its existing provisions is still unfortuntately way above what the potential counter parties are willing to pay. The substantial proviisons estimated likely > $120m is likely the gap to close the deral and cut loose the balanced toxic NPL.

So, do not expect there will be future write backs from the NPL provisions (the existing $132m + the new $xxxx m) as these provisions would likely be fully used to cut loose the NPL and recover back the residual cash.

RenYL has openly and repeatedly during the past 2 AGMs reiterated his commitment to all the shareholders present to fully sort out the NPL by FY26. I believe he meant what he had said.

The estmated ~$1.9B NAV will be lowered by the new provisions ( > $120m) expecting to be burnt off to fully cut off the NPL. YFH can then move on with a clean slate to step 2 and 3 in a new chapter.

YFH has $560m cash as at 1H25, with ~$161m in RE, and it could choose to pay a token dividend if RenYL wishes to reward the shareholders. Do not place too much hope on this as YFH has a policy to pay out 40% from NPAT, not from losses, even though the FY25 losses seems extraordinary.

This is only my speculationn, and I hope I am correct. A new YFH without the NPL burden is certainly the right way to go.

pkli899      ( Date: 26-Feb-2026 16:34) Posted: Btw, making loss due to provision means in the event money get collected, can write back. Only write off then is actual loss. Not so bad la.

 

Btw, making loss due to provision means in the event money get collected,
can write back.
Only write off then is actual loss. Not so bad la. 
 

 

Thank you HVRRVH & volvo125 for their respective posts.
Good read.
Need to read their results report before we can have meaningful conclusion.
Anyway, most here, including myself, didn' t see it coming.

 

3.5 cents is the EPS I forecasted before the announcement of needing to provide more allowance for credit losses. I don' t think dividend, if pay, will be anywhere near 3 cents. Probably 1 cent and best case 1.5 cents. 

HB8289      ( Date: 26-Feb-2026 15:48) Posted: I think now price is fairly low as their Key Dividend Forecasts Despite the expected loss, market trackers and historical data provide the following estimates for the 2026 payout: Estimated Dividend:  S$0.03 to S$0.035  per share. Projected Ex-Dividend Date:  24 April 2026  or  27 April 2026. Projected Payment Date:  15 May 2026.

 

I think now price is fairly low as their Key Dividend Forecasts

• Estimated Dividend:  S$0.03 to S$0.035  per share.
• Projected Ex-Dividend Date:  24 April 2026  or  27 April 2026.
• Projected Payment Date:  15 May 2026.

 

buy back a few hands at 29.5.  q for more at 29
no more futer DI related provision will means possible write back later.
immediate if the tax man agreed means less tax to pay.
probably no dividend but ok since buy at good discount.
no pay dividend means more for investment since provision is only paper exercise.
cash is still there.

 

Bot some 295....

kt3152      ( Date: 26-Feb-2026 11:03) Posted: Got this from Gemini. ​ YZJ Financial (SGX: YF8) - Post-Spin-Off ​ Total Net Cash: Approximately S$956.7 million. ​ Net Cash per Share: Roughly 27.5 Singapore cents. ​ Total NAV per Share: Roughly 53.7 Singapore cents. If correct buying at 29 seems OK......

 

It would be hugely positive if npl is no longer an item on the balance sheet going forward. Let' s hope it is the case so that in future even if the npl/debt is written off, it will not affect the future balance sheets. 

 

Pre spin off yfh had RE $379m, ymd took us$168m or ~$218m, so yfh should be left with RE $161m. Yfh accounted for 46% of 1h25 npat or ~$63m. Estimated fy25 npat should be ~$120m. To incur losses, npl provisions likely >$120m, likely a final stroke to try clear out all the npl by 2026.

HVRRVH      ( Date: 26-Feb-2026 11:15) Posted: Investors should take note of the following:  1) Recognition of credit loss allowance - It is not write off or impairment. It is just recognising that the debt cannot be collected at the moment and as per accounting practice, the corresponding sum has to be provided in the event that the debt is write off. Of course, it is still negative but the debt is still there, if in future it is collected, there will be an item in the balance sheet termed ' write back of credit loss allowance' or something to that effect. In fact, it has already happened before in YZJF' s book. There is no actual cash loss in ' recognition of credit loss allowance' .  2) The company can declare dividend even its FY results show a ' loss' , as long as they have retained earnings. In this case, YZJF has been profitable since listed in 2022 and it has no debt and huge cash in hands. They can difinitely afford paying dividend if they want. The question is not whether they can but whether they will.  YZJF is at the cross road after spin off. The lucrative maritime segment was spin off and it is now a pure play investment company. It started with huge debt investment businesses in China real estate sector and incredibly, the sector is still in doldrums after so many years. It seems that the China govt is teaching real estate tycoons a lesson as they have been having it good for so long. Now, the message seems to be ' you clear up your own mess' as long as it doesn' t affect other aspects of China economy. Before the spin off, YZJF reported 1H25 profit of $137m. So, I am curious how much of this profit has been shifted to YZJM as it defy logic to turn $137m profit into a loss in 6 months. Let' s be clear, the management did not manage the upcoming results announcement well. What' s the point of issuing profit guidance 2 days of actual results announcement? This should be done at least 2 weeks ago. I think the administrative and accounting works with regard to spin off may have overwhelmed them. In summary, YZJF back to pre spin off day and its valuation shuold stay at current level for some time, unless its DI business sees positive development. They still seems unable to find opportunities to deploy their huge cash, there was no news after the proposed RMB$1b investment into Shanshan did not materialise. The management should face some questioning in the upcoming AGM.

 

[SINGAPORE] Yangzijiang Financial shares fell on Thursday (Feb 26) morning amid heavy trading on news of the investment management company?s forecast loss for its second half and full year.

This comes ahead of its H2 and FY2025 financial results, which are expected to be released on or around Friday.

As at 10.19 am, the counter dropped as low as S$0.29, 15.9 per cent or S$0.055 below its latest closing price on Wednesday of S$0.345, with more than 53.7 million shares changing hands. This marked its lowest price in more than two years, as it last traded below this price in October 2023.

By 10.25 am, the stock trimmed some of its losses and was trading at S$0.295, down 14.5 per cent or S$0.05. With around 54.1 million shares transacted, it was the second most heavily traded stock on the Singapore Exchange by volume.

The company on Wednesday said it expects to post a loss for its second half and full fiscal year. This would mark a reversal into the red from its FY2024 net profit.

The projected declines were attributed to the recognition of substantial credit loss allowances, after a ?comprehensive review? of the group?s debt investment portfolio.

Yangzijiang Financial said it conducted the reassessment to reflect updated credit risk profiles, given current market conditions in China?s real estate and credit markets. This led to higher provisions for non-performing loans and expected credit loss allowances.

 

It is not operating collapse, but asset write-down
the management is prudent to recognise losses early and clean up the balance sheet after the spin-off 
​

 

Hopefully. YZJF has been drag down by DI since day 1. 

volvo125      ( Date: 26-Feb-2026 11:36) Posted: Pre spin off as at 1H25, yfh had cash $1027m, or $1521m including yield products (near cash). Post spin off ymd took u$359m cash or ~$468m, so yfh should be left with ~$560m. As at 1H25, yfh total assets (after adjusted for spin off) should likely be left with ~$1984m with negligible liabilities, ~$560m, ~$1120m in DI(net after $204m provisions), and ~$304m (fvtpl assets, trade receivables, others). Yfh accounted for ~46% of the 1H25 npat or ~$63m, so fy25 npat should likely be ~$120m assuming neutral adjustment from exchange gain or loss. In order to register losses, yfh likely recorded a new substantial npl provision of >$120m against its net NPL ~498m in the book. RenYL had in 2024 told shareholders during agm that yfh was on track in clearing the npl in 40%(2024), 30%(2025), 30%(2026). Again during 2025 agm, Ren told shareholders yfh was in line to clear the second 30% in 2025. During the sep25 egm, the ymd circular mentioned yfh has plan to sell off npl via judicial auctions. I believe yfh might have tried to clear the npl but realized the net book value was still well below what the potential buyers wanted to pay. This substantial npl provisions >$120m likely is a final stroke for yfh to cut off the toxic npl from its book.

 

Pure investment company means the write off for di china property related is last time. No new property di since they said get out of di sometime ago. So nta gt 50 cents, 29.5 cents is a bargain to me. They just need to invest to get 8% return will be good dividend later.