That's water under the bridge now. Even shares of YFH have gained a new following. The stock has been clocking a series of new 52-week highs this year. The Edge Singapore flagged in early February that YFH was undervalued as it was trading at even less than its net cash per share despite being profitable and paying out 40% of its earnings as dividends (Issue 1174: Is it YZJ Financial's turn to shine after YZJ Shipbuilding's bull run?)
Spinning off the financial investment arm of Yangzijiang Shipbuilding (YZJS) is one of the best things Ren Yuanlin believes he has done for shareholders. The shipbuilder's share price has gone up more than threefold, giving it a market value in excess of $10 billion, since Yangzijiang Financial Holding (SGX:YF8
) (YFH) made its own trading debut in April 2022.
Before that, many investors had reservations about YZJS being involved in both shipbuilding and financial services. Among their concerns was its exposure to the financial sector in China, where it faced the risk of being saddled with bad loans as its business included lending to Chinese companies and sole proprietors.
