In addition, Yangzijiang Financial recorded a net fair value gain of $50.6 million in FY2024, compared to $17.7 million in FY2023. This increase was mainly driven by unrealised fair value gains from Singapore fund investments, partially offset by unrealised fair value losses from China-based venture capital fund investments.
As such, Yangzijiang Financial's FY2024 earnings jumped by 51% y-o-y to $304.6 million.
In FY2024, the company further reduced its exposure in China, as articulated to investors.
As at Dec 31, 2024, its net asset value per share increased to 116.82 cents, up 9.6% over Dec 31, 2023.
Besides an absolute growth in its net assets, a smaller share base due to its share buyback programme helped as well.
Yangzijiang Financial plans to increase its final dividend from 2.2 cents paid for FY2023 to 3.45 cents, implying a payout ratio of 40% and based on Feb 24 closing price of 56 cents, gives a yield of 6.1%.
Going forward, Yangzijiang Financial says it will continue refining its sector rotation strategy by limiting new loan exposure to underperforming industries, particularly real estate and related sectors.
It will actively manage non-performing loans through restructuring initiatives and legal recourse.
For now, the maritime sector is still seen as an attractive sector to invest in, driven by stricter environmental regulations and increasing demand for alternative financing solutions.
Its maritime portfolio spans vessel portfolios, finance leases, loan services and joint ventures in ship chartering, brokerage and import-export activities.
“We are pleased with the progress made in reshaping our portfolio, successfully reducing our exposure to China while expanding our presence in high-growth sectors," says executive chairman and CEO Ren Yuanlin.
"This strategic adjustment strengthens our resilience amidst economic challenges, particularly within China’s real estate sector, and positions us to capitalise on global investment opportunities.
"We remain highly agile in our capital deployment, ensuring we respond swiftly and effectively to changing market conditions. Our strategic focus on maritime investments not only strengthens our competitive edge but also positions us for sustainable, long-term growth in the years to come," he adds.
Yangzijiang Financial shares closed at 56 cents on Feb 24, unchanged for the day but up 66.18% in the past 12 months.
