Yangzijiang Financial Holdings (YZJFH) recently released its annual financial results, aligning with expectations.
In brief, the company reported earnings per share at 8.6 cents, and declared dividends of 3.45 cents. An interesting point is that their earnings saw a boost due to a Chinese government grant, contributing an additional 1 Singapore cent, coupled with an absence of credit allowance provisions for losses.
As of now, YZJFH’s shares are trading at 56.5 cents, giving it a market capitalization of about SGD$1.98 billion.
Regarding their earnings, YZJFH benefitted from a SG$40 million government grant and SG$30 million in exchange rate gains this fiscal year. However, it is unlikely they will replicate this in FY 2025. That said, as the company’s debt investment portfolio decreases, we might witness further reversals in credit allowances, termed “gains,” which could help offset the current reliance on government grants.
Looking toward the future, I anticipate YZJFH will maintain earnings close to 8 SG cents annually for FY2025. This optimism stems from two main factors: the expansion of their maritime investment business in Singapore, and the anticipated reversal in credit allowances they will undertake.
