Yinggao Share Discussion Threads

[davydoo] 05/1/2012 15:25

Happy new year Matt

Yes another year in the bag for YGH with the results to look forward to in May hopefully. The full period with the additional barges should make sales, profits and cash all substantially higher.

Ive been looking again at INB, having sold out following the investment Sinotrans made at 11p. With the shares back to 6.75p and the Sinotrans investment reducing the interest costs and giving access to new asian markets i think the potential here is very good again. Also a limited number shares available in the market with many major transport companies on the shareholder register, makes it an attractive bid prospect.

All the best for the year ahead.

[mattjos] 04/1/2012 18:45

davy .. this will just sit so far under folk's radar for the next year or so. Sadly the the spreads & liquidity deter 99% of investors .. but by 2013, Yinggao could very well be almost the dominant player in their local market & have built up a good cash pile for some acquisitions and/or look to bring the granite mine on-stream with a JV.
I keep nibbling on a few as/when i have some cash looking for a home .... able to buy well below the mid point just lately so assume we have a passive seller in the background at present.
i am looking forward to the FY results though and see if we get any further strategy update

[davydoo] 04/1/2012 11:22

looking at this site again, suggests another new larger barge Ying Gao 362

[davydoo] 21/12/2011 21:01

On reassessing the last interim results, I have just realised I completely misunderstood the substantial payment made in the last period described as 'lease prepayments'

I previously took it to mean that they were prepayments e.g. deposits on future barges yet to be leased, which concerend me a little, however I now realise that they were pre-payments to recent leases, that secured the current terms, and will be accounted for over the next 15 years.

Im a little happier now, but I will be interested to see if they do a similar thing with leases yet to come, as they are potentially throwing the major benefit of these lower ongoing lease rates into the later years of the lease period, when perhaps alternatices will be significantly more expensive.

Im just hoping it will remain listed long enough to reap those rewards.

[davydoo] 20/12/2011 14:36

An alternative vessel tracking site for anyone who is interested.



Doesn't appear to be any new barges added recently, but this site includes some pictures for anyone that wasn't sure what size/capacity the barges actually are.

[mattjos] 08/10/2011 22:05

this might help anyone wanting a snapshot

[mattjos] 23/9/2011 08:17

good point Davy but, at present, it seems a win-win relationship between patron & Yingaao. The market for the barges can only be so big but by the way they are reportedly performing they must be taking a huge amount of business from the competition. Give it another year and some sectoral consolidation opportunities should present themselves

[davydoo] 22/9/2011 23:27

The lingering question I have is regarding the substantial prepayments on barges, was it for barges brought in to service recently or still to come? And the one I dont think you'd get a straight answer to, was it a deal done to benefit yinggao, or the owner, because it feels like a cash call, and I can't fully shake my worry about where ultimate barging profits will lie as i mentioned a long time ago. Although whilst the gross margin is strong I'm happy, I await to see what happens next time we build cash.

[mattjos] 22/9/2011 23:05

buggy i've posed those two questions before. Any new ones in relation to the results anyone?

[buggy] 22/9/2011 21:45

You can add these these or something to get answers to the following question and concerns:


4. Do they have any plans for the Quarry mine or is that no longer considered to be core to the company, (let the lease/agreement or whatever lapse).

5. Could they try to update the market a bit more often with developments rather than the current 2 RNS a year ,(one for Prelims, and one for full year results) ...that kind of gives the impression that they have nothing of note to report in between while the results clearly shows that great strides have been made. Updating the market regularly will keep the stock in focus with current investors as well as potential investors.

[mattjos] 22/9/2011 20:26

am intending to email Angela with a few questions i have about the results:

1. Number of barges in the fleet at period end
2. Some explanation as to how the ownership of Keen Chance Terminal actually works cos i'm struggling a little to understand it
3. Who owns the balance in Fujian Sanko Mining

Anyoone else got some points they'd like me to include on their behalf?

[damanko] 20/9/2011 21:59

Thanks davydoo.

I still have the original iii share certificate, which I refused to send them when it was taken over..... heady days. Kingston Communications in the FTSE 100 at sixteen quid.......

Somewhere I'll have a passeword for that iii BB. Somewhere..................

[damanko] 20/9/2011 21:47

Share your link on the iii board, if you can.

Thanks.

[davydoo] 20/9/2011 20:28

I've been an occasional (and lonely) poster on the iii board for YGH. Just re-reading some of my posts and I was reminded that someone bought for 2.6p early in the year, which is before the big uplift in the number of barges. Just shows despite the mid holding at a little over 2p for the first 6 months of the year that there has been people prepared to pay well to get a stake of YGH.

If it's only existing holders adding to their positions on results day, then the small free float, is slowly becoming an ever smaller free float come any real attention and buying pressure.

[mattjos] 20/9/2011 15:38

the trading volumes of late .. ie. the sells that there have been, have been negligible below the 2p level. I suspect this will simply have to trend upwards yet to encourage any more stock into the market if there are any buyers waiting.

[davydoo] 20/9/2011 15:27

Well it really is unnoticed then, because I took the other 25k traded today as it was all i could get at 2p.

[mattjos] 20/9/2011 15:19

yup .... ridiculously all i can quoted for was 25k shares. seems daft but, i took them. Amazed that it seems only existing holders have picked up on the results despite a 7am release.

[damanko] 20/9/2011 13:29

Hmm....

As an exercise, I just attempted to purchase 100,000 shares - from the outfit I've used many times in the last few years. "Sorry, your trade cannot be executed" was the answer/result.

I think that may be good news, funnily enough.

Also think that day's end may see a little movement in the share price. We'll see......

[davydoo] 20/9/2011 12:41

Price hasn't moved which surprised me, but I was quoted 2.25p to buy 100,000, way over the quoted offer of 2p

[camy] 20/9/2011 11:50

So 54% of the Group's revenues were derived from trading of non-ferrous metal. This might be seen as building the capability to transport output from the mine themselves - in due course. Growth and growing with momentum.

[davydoo] 20/9/2011 10:56

Great Results. I'm particularly pleased to see the high margin on barging maintained. Also important to remember a lot of the new barges wouldnt have contributed a full 6 months, and some have come on post period end, so we can already expect further growth in sales and profits at the full year already.

So what next for future cashflow? with new port equipment bought, substantial prepayments now made on barges, I wonder what the plans are for future cash? The mine? dividends? more barges? new ventures?

Certainly great prospects, and still very much under the radar over here on AIM, which im sure will need addressing at some point.

[damanko] 20/9/2011 10:54

davydoo, couldn't agree more. Good comment.

Just had an operation on my foot, was feeling quite sorry for myself - until reading these results. Yet to get to the end - but what strikes me immediately is cash flow. Any sensible business man/woman knows that without cash, no business will survive - anywhere on this planet. Depreciation / amortisation and what not - smoke and mirrors on the P&L account. What counts is cash - real cash.

The extract below suggests 4 times cash on hand compared to last year, nearly 2 million pounds sterling. In a company valued at £34.63 million right now. As our cousins across the Atlantic would say - "Do the math."

On with the reading.................


"The Group's cash balances stood at HK$ 24 million as at 30 June 2011, compared to HK$6 million as at 30 June 2010. The Group made HK$102 million prepaid lease payments during the first six months of 2011(H1 2010: HK$ nil) which was paid to the owner of our new barges as a deposit payment so as to secure a long term lease as well as a competitive chartering fee. These substantial lease payments resulted in the net cash generated from operation activities of minus HK$3.5 million. However, management took the view that this is a one off expenditure which the board does not consider a long term working capital hurdle to the Group."