How can you not love a company that makes "adsorb dung vehicles". ;-) finance.yahoo.com
Barrons online.barrons.com reports:
THE LONG DECLINE IN NEW YORK-LISTED China Yuchai (CYD) shares is moderating. Just recently, Yuchai released its 2007 audited results, at last fulfilling one demand of frustrated shareholders. But don't break out the champagne yet; they have plenty more complaints.
China Yuchai owns 76% of engine maker Guanxi Yuchai Machinery and is said to have a bright future. It's also majority-controlled by Hong Leong Asia (HLAsia.Singapore), an investment vehicle of Singapore's Kwek family. Even the Kweks must be upset. Yuchai changed hands last week at $3.86, down from a high of 37-plus in '03. In December, shareholders led by Peter Delgado of Threshold Capital wrote to management, demanding "an urgent rethinking of the audit function," given reporting delays; "clarity" about a few Yuchai investments; a new CFO -- and even offering to buy the Kweks' shares. Delgado says about a fifth of Yuchai's shareholders have contacted him expressing support.
In an e-mail last week, Yuchai said that a new management team had been brought into the company -- a new chief financial and chief operating officer joined in 2008 -- and they were making improvements. Further, Yuchai said that "The new CFO has worked to complete the two most recent 20-F filings with the U.S.-GAAP-compliant, audited financial statements." Even speedier reporting and a clear path to growth -- particularly in the U.S. -- would hoist the price, says Delgado, who bought his stock in 2003. Having officially earned $2.06 in '07, Yuchai is "a small and undiscovered jewel," he says.
Himanshu Shah of Shah Capital owns nearly 6% of the shares, and admits he's frustrated -- he bought in 2005 at considerably higher prices. He maintains that Yuchai is poised for growth. In fact, despite its tiny market cap, he likens it to Caterpillar and Cummins Engine. |
