The analysts point out that Yangzijiang Financial remains proactive in freezing the land assets by developers as collateral to safeguard its cash flows, and will work towards restructuring these exposures in the case of repayment difficulties.
CGS-CIMB analysts Andrea Choong and Lim Siew Khee have reiterated “add” on Yangzijiang Financial with an unchanged target price of 55 cents as they look forward to improving macroeconomic conditions, which should support a stronger investment landscape as well as non-performing loan recoveries.
At a business update briefing on Nov 24, the company notes that operating conditions in China are improving as the government, banks and insurers are working together to solve outstanding issues with property developers.
