First time hearing about ROIC, could be because I'm not trained in finance. So I can't really comment on ROIC or to recommend anything bad on it.

But if I were to recommend an undervalued company that has great potential, I would recommend $YANGZIJIANG SHIPBLDG HLDGS LTD(BS6.SI)$

At last traded price of $1.64, it's trading at 0.842 of its book value with a PE ratio of 8 times. It is also going to spin off its new company with the new shares given to eligible existing shareholders of YZJ, similar to $AT&T Inc(T)$giving free shares in $Warner Bros. Discovery(WBD)$after the spin off.

The proposed new company Yangzijiang Financial Holdings have already been given approval by SGX to be listed pending shareholders' approval on upcoming EGM.

Share price of YZJ is expected to drop after the spin off but investors on forums seem confident that it'll go up again despite head winds such as rising price of steel and possible disruptions caused by covid lockdowns.

I had been recommending this stock YZJ several times over just as I had been recommending LREIT and a few others such as MCT etc. LREIT rights shares exercise just ended a few days ago. Grats to those who bought early and also took part in the rights shares issue. 

(The new company MPACT could be the next big thing to watch when MCT merges with MNACT, I've already bought in when news of the merger came out.) 

YZJ could be worth taking a look if you're not vested yet. However, just note that I'm quite vested in YZJ and my views could be biased. So you'll need to DYODD before making any personal decisions to invest. 

# Share one quality company with high ROIC which trades at a fair valuation

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  • ThinkOrSwim
    ·2022-04-17
    Ah, YZJ. A company full or controversies. Hasn’t recovered from 2007-2008 crisis. Those who held on to this day will be dissapointed that the split will not recover their unrealised losses.
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    • Toby_ChuaReplying toFurore
      Hindsight is easy
      2022-04-18
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    • ThinkOrSwimReplying toFurore
      DCA? Made back those losses? How come you didn’t do that and chose to buy only during a crisis? I sense contradiction on your views. [Sweats]
      2022-04-18
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    • Furore
      I'm glad I sold mine in '07 before the crash
      I bought again in Dec'20 when prices were below $1
      If those who didn't sell before the crisis continue to DCA, should have made back the losses easily
      2022-04-17
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  • Furore
    ·2022-04-18
    My personal take, but it's just a guess and I could be wrong
    The share price may go up to $1.95 just before the ex date of the spin off
    And then drop to around $1.10 after the ex date
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    • Furore
      YZJFH probably will trade and close below $1 on the first day of trading
      Coffeeshop uncles and aunties speculation
      Take it with a pinch of salt
      [Happy]
      2022-04-18
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  • Furore
    ·2022-04-16
    Just did a quick Google Search
    YZJ's ROIC in 2018 (pre-covid) was 11.19% and its past 5 year average is 8.85%.
    Not really sure how high it has to be to be considered as having a good ROIC value.
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    • Furore
      Since ROIC standards of average seems to differ across different industries.
      2022-04-16
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  • Furore
    ·2022-04-16
    Recommend anything based on it
    Not "bad on it".
    Sorry for the typo, too bad I can't edit it hahaha...
    😅
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  • 大饼鸡蛋666
    ·2022-04-17

    [微笑] 

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  • hiM
    ·2022-04-17

    YangZiJiang

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  • jilimi
    ·2022-04-19
    👍
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  • ARIESan
    ·2022-04-18
    👍
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  • TaiJin
    ·2022-04-18
    [Miser]
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  • jaffer
    ·2022-04-18
    yes
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  • Spongebob
    ·2022-04-18
    Yzj FTW!!!
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  • Nagoken
    ·2022-04-18
    Hello
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    • Nagoken
      Hello
      2022-04-18
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  • Brocco
    ·2022-04-17
    Ok
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  • ak_0912
    ·2022-04-17
    Hii
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  • schurichui
    ·2022-04-18
    maybw
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  • tcwdoggy
    ·2022-04-17
    1st time
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  • bossbaby
    ·2022-04-17
    Good
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  • leewei
    ·2022-04-17
    ji
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