YaSheng Group (HERB)

[RealDutch]

Yasheng Group USA (Ticker : HERB)

Net assets : $2.42 billion
Current valuation : $82.2 million (assuming share price = $0.53)
Potential upside : 2,900%

Recent development : asset swap between HERB and a sister company.
http://www.sec.gov/Archives/edgar/data/1123312/000119983515000456/yasheng_pre14c-16578.htm

Benefits

- Limited risk due to appraisal firms and auditor confirming asset valuation.

Assets being swapped out : $2,262,478,200
Assets being swapped in : $2,308,149,500

- New assets generate $140M of free cash flow which the company can use to
* ramp up other business segments
* pay a dividend
* get loans
* easier to spin off assets or get a listing in China (due to reduction of complexity and a history of profitability).

New assets generate close to 65% profit margin due to very low cost of management rights (The company doesn't own the Land Use Rights which would have resulted in significantly higher cost).

New assets consist of 12,633 acres of land. Mostly oranges and Broccoli. Fertile land in the South Eastern part of China.

Growth prospects.

- Angel Star Instant Formula could result in revenues up to $1 billion in about 5 years from now (according to presentation on the website)
- Hemp? Already adding 5,000 acres of plantation every year.
- USA mining projects?

See new website (http://yashengusa.com)