trading at RMB40. Weichai has 833 million shares outstanding, putting its market cap at 33.32 billion RMB, roughly US$4.88 billion. Weichai's forward PE is 21. Yuchai and Weichai are the two largest desiel engine manufactures in China and each has its own strengths and weaknesses.
Using the current market cap of CYD, Yuchai group's market value is roughly $500 million, way lower than what it should be or would be if it is listed in China. If a PE similar to that of Weichai is used for Yuchai, CYD's market cap should be roughly $1 billion, putting CYD at roughly $27. I am not sure about $27 but it is way undervalued at the current price, largely due to the incompetent management in Singapore. I think the CEO of Yuchai Group, Yan Ping, has been truly fed up and the days of golden share are numbmered.
A few years ago when YanPing took the job he had vowed to remove the golden share as his top priority. I am sure he still want that to happen. But as we all know that cummunist China is just corrupt as capitalist USA and Singaporeans can take advantage of that. Remember what happened to Mr. Wang JiangMing when he tried to force the issue?? YanPing is a little smart than that..
Totally agree with you. Yan Ping should do more to break through HLA's shielding of CYD from outside world. On Yuchai's web site, people can not get a feel that this is a company that most profit goes to some one else. I think most of people in China does not know CYD.
Honestly, I think Yuchai Group really hate them (HLA) also and I think there is still issues between two of them in terms of communicating financial numbers. This could be a reason that HLA can not get the report out on time. My guess may not be true since they should be able to report CYD’s data at the same time as HLA’s data.
There is a good chance that Yuchai will joint the insurrection group to get rid of the golden share.
Another thing is that Yan Ping is on CYD’s board. What did he say recently about the CYD’s future?
I have a simple reason! This is the golden egg they do not want anybody to know, anyone to share with. Image is a big shot U.S. firm get a hand on it and want a piece of pie, HLA has to give it up. HLA made CYD looked so bad, no one will touch it and they can keep it forever! Now we have a few small, midium sized fund company have their hands on it, so what kind of trouble it already brought! HLA is not stupid, they just try to hide and hide. What a pity small ass.. They just urgly..
Yes, indeed. Every year CYI distributes only a small percentage of the dividend it receives from Yuchai Group to shareholders and it keeps the remainder, or invests in something else. If all the dividend is distributed, CYD's shareholders will receive a much hihger dividend every year. The amount that Yuchai Group distributes to CYI every year is in CYD's annual report and can be easily figured out.
But this still does not make sense to me. HLA can collect all the dividend and do whatever they want to do with the money, but as long as they report earnings on time every quarter and keep shareholders informed, at least pretend to, CYD will be trading at higher prices and shareholders may not have too many issues with the golden share and HLA. And I do not think anybody loses in that case.
Maybe HLA is just stupid stupid stupid and arrogant arrogant arrogant???
Yes, the divident is quite a lots, HLA recoupe their investment by that payment long time ago. Remember they keep those divident to by the other two junks entities try to diversify? They only pay out very little to our common shareholders! I think this is the biggest reason that want to keep their Golden Share. Those money milk them will! They wil have to give that up when Golden share is gone..
Weichai went up about 7% again yesterday and is going up today. Yuchai is so cheap compared to Weichai. Think about this: Weichai's market cap increased about US$700 million in past three days, which is more than the market value of whole Yuchai Group if we use CYD's market cap for calculation.