YZJFH: 20 Cents Now, 40 Cents Within Reach- The NAV Math Says Maybe

I am now seeing a clear valuation anomaly at Yangzijiang Financial Holding (YZJFH). My reference point is the S$0.53 NAV per share reported as at 30 June 2026 (slide 10) link: 1H Financial reports, against a prevailing share price of S$0.20, which implies the stock trades at 0.40x book (slide 2), or roughly a 62% discount to intrinsic value. In my view, this gap is unjustified given the quality of the underlying asset base, and I see room for the stock to re-rate meaningfully from here. The company too has started an aggresive share buyback of its shares given the selling pressure, this signals a massive undervaluation.

The NAV isn't a paper number built on hard-to-value assets. YZJFH holds total AUM of S$1.82 billion (slide 5), of which S$575.4 million is cash and cash equivalents (slide 10), cash that can't be disputed or written down. On liabilities, the picture is equally clean: YZJFH carries zero bank borrowings, and 93% of its S$118.4 million total liabilities is deferred tax, not debt owed to a bank (slide 10). A balance sheet this liquid and this lightly geared gives me confidence in the NAV.

On the debt side, YZJFH has already taken its lumps, and in my assessment, conservatively so. Of the S$1,323.2 million gross debt investment book, S$667.2 million is classified non-performing; against that, YZJFH has set aside S$439.2 million in provisions, which means an expected credit loss rate of 65.8% on the bad debt (slide 8). Across the whole debt book, the provision rate is 39.3% (slide 7). These aren't light-touch numbers; they reflect the worst-case book being written down hard already, so the S$0.53 NAV isn't hiding a debt time bomb, it has already absorbed one.

The trend, in my view, is now turning in the company's favour. 1H2026 saw a S$16.6 million reversal of credit loss allowances as recoveries progressed (slide 6), and the gross debt balance has fallen for four straight periods, from S$2,639 million in FY2022 to S$1,323.2 million now (slide 6). Net assets grew 6.0% half-on-half to S$1,851.9 million (slide 10), and YZJFH has already deployed 70% of its planned RMB1.0 billion into high-yield opportunities (slide 3), on top of applying for a Capital Markets Services license with MAS to build out fund management. None of that progress is reflected in the share price.

S$0.40 as a reasonable base-case target, not an aggressive one: investing now would double an investor's capital from current levels, and the stock would still be trading below its S$0.53 NAV, which means there is a margin of safety even at that higher price. In my view, this is the disconnect the market is missing: a cash-rich, lightly-geared, conservatively-provisioned balance sheet, growing its NAV and expanding into new revenue lines, still priced at 40% of book.

Key takeaway: at 20 cents against a 53-cent NAV, with a credible path to 40 cents that still sits below book value, I rate YZJFH's share price one of the more mispriced value opportunities on the SGX.