Why am I buying Yanzijiang and JES International now

pine
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10 years 2 weeks ago #19608 by pine

Replied by pine on topic Why am I buying Yanzijiang and JES International now

No one can believe it -- JES now only 8.7 cents?
Lots of short-selling lah.

JES will be presenting at HSBC conference tomorrow, according to SGX announcement. infopub.sgx.com/Apps?A=COW_CorpAnnouncem...RIMDI6Y#.U0Kw_PmSxoQ

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Azzaramich
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10 years 2 weeks ago #19616 by Azzaramich

Replied by Azzaramich on topic Why am I buying Yanzijiang and JES International now

I am surprised by the continued weakness in JES share price. The contracts winning and share placement at S$0.14463 were supposed to provide some support to the share price, but guess the auditor report causes much alarm.

Now the company has announced venture into forestry business in Africa. Totally baffled....why massive capital expenditure into unrelated business at a time when the company is in desperate need of working capital for a recovering shipbuilding industry.

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pine
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10 years 2 weeks ago #19617 by pine

Replied by pine on topic Why am I buying Yanzijiang and JES International now

Azza, this calls for great faith, doesn't it? It's an exciting growth story but there are many many steps for JES to take. 1-2 years from now, the stock price could have returned many hundreds of %? Or it could have sunk to 2-3 cents? :ohmy:

JES eyes forestry business in Africa, acquires 51% of SCIBOIS Co. Ltd

 The target group owns a forest harvesting license up till May 2036 in Democratic Republic of the Congo. The forestry asset covering an approximate area of 229,400 hectares is
estimated to be worth more than US$3 billion

 JES, with the inclusion of the forestry asset, will seek to tap into debt capital markets to raise significant funding for both shipbuilding and forestry businesses

 JES given profit guarantee of US$170 million over four years, SCIBOIS to seek listing within this timeframe

 This acquisition will provide JES with an opportunity for
growth; extension into complementary logistics and port
businesses; and exposure to diversify from the existing
cyclical shipbuilding operations

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Azzaramich
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10 years 2 weeks ago #19633 by Azzaramich

Replied by Azzaramich on topic Why am I buying Yanzijiang and JES International now

I prefer to rely on business logic than faith in making investments. While the forestry business is very exciting, it seems too good to be true. And the diversification at this juncture into a totally unrelated business makes no sense.

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pine
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10 years 2 weeks ago #19636 by pine

Replied by pine on topic Why am I buying Yanzijiang and JES International now

Good scoop by BT.

Forestry a better investment: JES
Scibois has concession rights and is already operational: CFO

BY ANDREA SOH
sandrea@sph.com.sg

CHINESE shipbuilding firm JES International said it was switching from an earlier mining investment to forestry as the latter provided a better deal for the company.

"In almost everything, this new forest investment will present a much more worthwhile investment as compared to the magnesium announcement," its chief financial officer Patrick Kan told The Business Times.

The mainboard-listed group would buy 51 per cent of Scibois Co Limited, which has a 75 per cent stake in a timber extraction firm. The latter owns a licence to harvest 229,400 hectares of forest area in the Democratic Republic of Congo.

JES will pay the current owners - father-and-son pair Yang Shushan and Yang Nan - up to US$65 million in two stages.

In November, JES had announced that it would invest $127 million to buy up to 30 per cent of Mineriver, which holds exploration rights to a magnesium mine in northern Xinjiang. But this will now be put on hold, with a view to termination.

Compared to Mineriver, which only has exploration rights, Scibois has concession rights and is already operational, said Mr Kan.

"Given our position right now, it's much more advantageous for us to invest in a business to make money straight away."

Scibois' profits, which are currently "not big" due to the small scale of its operations, could be contributing to JES' bottom line as soon as this year, he added.

Full story at: www.businesstimes.com.sg

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Garak
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9 years 11 months ago - 9 years 11 months ago #19826 by Garak

Replied by Garak on topic Why am I buying Yanzijiang and JES International now

Book value = 21.2 SG cents.
Stock price = 8.6 cents.

Placement done recently at 14.463 cents for 42 m shares ....

Recent shipbuilding orders won include contracts and options worth
US$270 million and US$302 million respectively.

Last edit: 9 years 11 months ago by Garak.

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