Yangzijiang Financial falls nearly 16% to 2-year low on expected reversal into red

[SINGAPORE] Yangzijiang Financial shares fell on Thursday (Feb 26) morning amid heavy trading on news of the investment management company’s forecast loss for its second half and full year.

This comes ahead of its H2 and FY2025 financial results, which are expected to be released on or around Friday.

As at 10.19 am, the counter dropped to as low as S$0.29, 15.9 per cent or S$0.055 below its latest closing price on Wednesday of S$0.345, with more than 53.7 million shares changing hands. This marked its lowest price in more than two years, as it last traded below this price in October 2023.

By 10.25 am, the stock trimmed some of its losses and was trading at S$0.295, down 14.5 per cent or S$0.05. With around 54.1 million shares transacted, it was the second most heavily traded stock on the Singapore Exchange by volume.

The company on Wednesday said it expects to post a loss for its second half and full fiscal year. This would mark a reversal into the red from its FY2024 net profit.

The projected declines were attributed to the recognition of substantial credit loss allowances, after a “comprehensive review” of the group’s debt investment portfolio.

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Yangzijiang Financial said it conducted the reassessment to reflect updated credit risk profiles, given current market conditions in China’s real estate and credit markets. This led to higher provisions for non-performing loans and expected credit loss allowances.