Yangzijiang Shipbuilding - Spin-Off Unlocks More Value
- We think shareholders can unlock more value in Yangzijiang Shipbuilding (SGX:BS6) with its plan to list its debt investment business on the mainboard of SGX via dividend-in-specie. See Yangzijiang's announcements.
- We estimate a total of ~Rmb17bn (~S$3.5bn) assets will be transferred to the new listco, potentially being valued at 12-15x P/E on the fund management platform.
- Upside/premium of valuations of new listco could come from stronger-than-expected AUM growth and focus investments into ESG-related assets.
- Our current SOP valuations for Yangzijiang Shipbuilding’s debt investment at 1x P/BV, with a 10% ROE, is RMB17.5bn (S$3.5bn), or S$0.89 per share.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2021-12-08 2021-12-08
Previous report by CGS-CIMB:
2021-11-29 Yangzijiang Shipbuilding - Spin-Off In The Process
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