Yangzijiang Shipbuilding Holdings Ltd (SGX:BS6) (YZJ) is the only China-based company that is part of the Straits Times Index (SGX:^STI) in Singapore. The common term used for China-based companies in Singapore is “S-Chip”, which means China companies listed in Singapore. They were popular back in the pre-Global Financial Crisis (GFC) era with high investors’ demand and soaring share prices. However, they were also notorious for corporate scandals with financial irregularities, fund embezzlement and accounting fraud. Many companies had since went bust or suspended their trading that brought much distraught to investors.
Yangzijiang Shipbuilding Holdings is arguably one of the very few S-Chips that had performed well over the global financial crisis and S-Chip scandal, and has seen its business grown strength-to-strength in recent years.
Let us study YZJ’s overall operations and its strengths/weaknesses to see if its good enough to be part of your stock holdings.
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