Yangzijiang Shipbuilding ("YZJ") was one of the stocks which i had bought during the early years of my investing. It is also one of the stocks that i held on to throughout the global financial crisis in 2011.
For the Financial Year of 2014, YZJ continues to show resiliency in an industry facing huge head-winds. Despite the difficult times, YZJ has continued to provide shareholders with value by distributing 5.5 cents dividend per share for the FY14/15.
For the Financial Year of 2014, YZJ continues to show resiliency in an industry facing huge head-winds. Despite the difficult times, YZJ has continued to provide shareholders with value by distributing 5.5 cents dividend per share for the FY14/15.
| Year | Total Amount (SGD$) |
|---|---|
| 2015 | 0.055 |
| 2014 | 0.05 |
| 2013 | 0.05 |
| 2012 | 0.055 |
| 2011 | 0.045 |
| 2010 | 0.035 |
| 2009 | 0.018 |
| 2008 | 0.02565 |
In its latest financial report, earnings declined 15% yoy, dragged by lower shipbuilding margin and downsizing of assets. This is probably a direct result of the current slump in the Oil & Gas industry and glut in ship building back orders.
Not all things are gloom and doom, as YZJ continues to see strength in its order books for 2015. The total value of its order book rose to US$4.6b, consisting largely of container ships and bulk carriers. Being one of the industry leaders, yet being regarded by the market as undervalued (P/E of 7.61 compared to its peers of about 10.2) and having relatively high returns, i continue to see the possibility that YZJ will eventually ride out this down cycle and return to its pre-crisis price.
I currently hold 9 lots of the share, bought in 2011, at a slight loss over the last traded market price of $1.46. However, this does not bother me one bit, as YZJ remains profitable and even manages to distribute consistent dividends for the 4 years i have held it.
I will be looking forward to receiving the $495 from Yangzijiang to be paid on 18-MAY-2015.
Yours,
Dream Chaser
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