Yangzijiang Financial Holdings (YZJFH) has recently released its full-year financial results, and the outcome is right in line with expectations.
Earnings and Dividends
- Earnings per share stand at 8.6 cents, accompanied by dividends of 3.45 cents.
- The earnings were given a boost by a government grant from China amounting to 1 SG cent and the absence of credit allowance provisions in losses.
YZJFH is currently trading at a share price of 56.5 cents with a market capitalization of SGD$1.98 billion.
Insight into Earnings
In the latest financial report, YZJFH has garnered SG$40 million in government grant and another SG$30 million in exchange rate gains. While it is unlikely that this exact scenario will repeat in the upcoming fiscal year, the company’s debt investment portfolio is shrinking, which might lead to more reversals in credit allowances, essentially turning them into gains. This factor is expected to balance out the government grant income.
Looking forward to FY2025, it is anticipated that YZJFH will yield 8 SG cents in annual earnings. This optimistic projection is supported by two main factors. Firstly, the company’s maritime investment sector in Singapore is witnessing growth. Secondly, there will likely be a reversal in credit allowances due to the diminishing size of the company’s China debt investments.
Conclusion
In conclusion, YZJFH has managed to meet expectations with its financial performance. Despite certain unique gains in the past year, the company’s strategic growth areas suggest a positive outlook for the future. Investors and stakeholders are advised to keep an eye on YZJFH’s upcoming moves as it navigates the changing financial landscape.
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