- Yangzijiang Financial (SGX:YF8)’s net profit of S$40.2m in 2H23 (-75% h-o-h, +57% y-o-y) was 68% below our S$127.5m estimate. This brought FY23 net profit to S$202.7m (+25% y-o-y), at 70% of our full-year forecast.
2H23 net profit missed our estimates
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- Yangzijiang Financial declared dividend of S$0.022 for FY23 (FY22: S$0.018), which translated into a 40% dividend payout ratio. See Yangzijiang Financial's dividend dates.
Being prudent in deploying assets amid soft market conditions
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- As a result of the redemptions, cash and yield enhancement products accounted for an enlarged 40% of its portfolio assets at end-FY23 (end-3Q23: 31%).
- Management shared that it will remain prudent in the deployment of these funds given current peak market valuations and interest rate levels. Meanwhile, it will focus on raising interest income via currency swaps (e.g. from RMB to US$).
- Debt exposures to China accounted for ~40% of total assets under management (AUM) at end-FY23 (end-FY22: 59%), a step closer to its ~30% long-term target.
Recoveries progressing well
- Read more at SGinvestors.io.
