Chang Jiang Fertilizer

Chang Jiang Fertilizer: Next Insight re-highlights that the founder of GK Goh recently took at 13.98% stake in Chang Jiang fertilizers, via a married deal with Chang Jiang’s executive Chairman. Note that this comes at a time after China's newly sworn-in government rolled out policies to support its agriculture industry. As a backgrd, Chang Jiang is a producer of nitrogenous fertilizer in Hunan, China and had embarked on an aggressive capacity expansion plan in recent yrs that saw production capacity increase by 5.6x from 2002 to 2011, increasing it to 195,000 tons of anhydrous ammonia a year. Chang Jiang’s executive chairman share sale to Equinox was the second major paring down of his shareholdings. On 14 Jan, he disposed of 67.4m Changjiang shares for $10.4 millon, or 15.5c apiece, to a Cai Jian Hua. This was at a 2012 P/E ratio of about 8X and zero dividend yield. The company has not paid out dividends since its listing on the SGX in 2009. In terms of book value, the stock sale-and-purchase was at just 0.5X.