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China Yuchai International Limited Message Board

  • pdelgadoii pdelgadoii Oct 4, 2006 8:48 PM Flag

    Re:chillibeans - Dongfeng


    Thanks for all of your hard work. Here is a small story off of Bloomberg.

    I added to my CYD position today - both stock and calls. The stock is "undiscovered" here at these levels...similar to that when I first found CYD in early 2003.

    Best of luck to all.

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    • Thanks. For the benefit of the board, Dongfeng is one of Yuchai's large customers. Hong Leong is up on very large volume and so is Weichai but that could be general market enthusiasm as well. Hong Leong has some high price targets and so does Weichai. Weichai has appreciated considerably (80-90%) from the last year's downturn while Yuchai has been stuck in a rut. No reason not to show some enthusiasm over here as well :) I agree with your assessment. The lowest price in 2003 is around $5 (in January) and the company's value has increased since then. Whoever discovered it before then was lucky or a freaking genius. We're pretty much priced for the last year's downturn, the fears of delisting and corporate governance uncertainties (all of which have since disappeared). We're cheaper than any of the (much shabbier) Chinese counterparts that I have been listing recently - 2X book value is not unusual there. Weichai's not shabby but it's not cheap any more either.

      I think one problem is that a lot of people were hoping for a quick shabang following the announcement of a spinoff. A smaller group, yourself included, was hoping for a Chinese-led management. I will spare you the lesson of Mao's cat :)

      Another issue is that we still don't have an official announcement from the company that all is well. They were always generous with cautionary statements so let's hear some good news.

      • 1 Reply to chilibeans99
      • Chilli,

        Good morning. Thanks for your comments. I wrote P. Ting an email on Wednesday night saying I "was encouraged by his comments in the Singapore Times article"....and I ad a few questions to ask him (which are below). I will let you know if and when he ever responds.

        As you state in the article, �previous issues are past and gone,� what does this mean as to the status of the Reorganization plans still being considered by the Ministry of Commerce with the December 31, 2006 deadline?
        Since relations between the two parties have improved dramatically, is the Company still pursuing its �diversification plan�?
        Will shareholders see any benefits from its 36.7% stake in Thakral and 29.13% stake in LKN for the second half of 2006? And if not�when will US shareholders see a return/benefit for these investments?
        Has Guangxi Yuchai seen a stabilization of margins in the current quarter (Q3)? Or has the deterioration in margins continued into the second half of 2006?
        I have seen the progress the new Chairman has made on the Chinese management side (the Guangxi Yuchai website is greatly improved with more transparency and detail of the business)�..does HLA and Mr. Yan Ping have a detailed plan going forward to increase shareholder value (now that the company has a total market capitalization of only US$205 million?
        Will US based shareholders ever see a dividend again?

        Best of luck to all.

10.850.00(0.00%)Sep 30 4:02 PMEDT