Stop Chasing Yangzijiang: The "Peak Earnings" Trap (3 Good 3 Bad Series) |🦖EP1389 #investingiguana
🟩 Investors are chasing Yangzijiang Shipbuilding right now because of its record profits and high margins, thinking it is a safe bet for their retirement portfolio. But chasing past performance in a cyclical industry like shipbuilding is a dangerous game that often leads to buying at the top. The shiny numbers you see in the headlines today are actually the result of contracts signed years ago, and they mask serious risks that are building up for 2028.
In this video, I break down the "Operating Leverage" trap that most retail investors miss and explain why the current 35% margins might actually be a warning sign rather than a green light. We go beyond the headlines to analyze the "Margin Mirage," the massive drop in new order intake for late 2025, and the hidden currency risks that could crush future dividends. I also check the Fair Value using InvestingPro models to see if the stock is truly cheap or just a value trap.
Read the full in-depth article with video at
YOUTUBE ➡️ https://youtu.be/IbjWsT7rM1w
SUBSTACK ➡️ https://open.substack.com/pub/investingiguana/p/yangzijiangs-sgx-bs6-3-good-3-red?r=5enmf1&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true
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