Yangzijiang – quietly moving upwards

Banks have been doing extremely well. They have indeed helped the bank-heavy Straits Times Index (STI) to climb about 22.6% since start of Covid-19 pandemic measured from from beginning March till December 2020. Today it stands at 3200.26.

Other than the trio, which have been on the news following their outstanding Q1 results, one stock has been quietly moving sharply upwards of late – Yangzijiang (YZJ).  Yesterday, it ended at $1.53, a whopping 62,2% increase over the Covid-19 pandemic period in 2020.

Interestingly, the share price of YZJ at this level was almost non-existing over the past 10 years, let alone the sharpness of the ascend.  In fact, just three months ago, it was still struggling below $1. For the whole year in 2020, it had been relatively range-bound between $0.90 and $1.00. Many retail investors were lamenting what happened to YZJ, and there were even talks that YZJ could be purged out of STI like SPH.  News, whatsoever, did not even moved the price by a needle.

It took a slew of good news of contract wins and almost daily shares buy-backs between September 2020 and January 2021 to help push the stock price to this level. The treasury shares was at about 0.766% before the company started to mount its daily shares buy-back. As of 7 January 2021, the treasury shares is calculated to be about 3.16%. More recently, a further push was made in early April 2021 by a substantial holder for more than 3 million shares. Let’s hope the party continues.

Brennen has been investing in the stock market for 30 years. He trains occasionally and is a managing partner for BP Wealth Learning Centre. He is the instructor for two online courses on InvestingNote – Value Investing: The Essential Guide and Value Investing: The Ultimate Guide. He is also the author of the book – “Building Wealth Together Through Stocks” which is available in both soft and hardcopy.

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