YaSheng Group (HERB)

[RealDutch]

Modes, we expected this to happen. Book value doesn't tell the whole story. Certainly when you are considering things like intangible assets like land or management rights or goodwill, you are totally dependent on accounting rules. Same applies to SIAF, where they can't book some of the assets they have.

I could see this coming many years ago, a situation like HERB, that's why it's not affecting my valuation model.

The company is still valued at $2.4 billion by the appraisal firm, with the new assets. With or without "book value". They used the profitabiliy method (discounted cash flow) to value the company. You can only do that when the assets have a history of profitability and that will very likely continue for many years to come, as is the case for the plantations. It's all in the filings.

As I have said many times now, people need to focus on (free) cash flow. They are generating between $100M and $200M in cash every year! From the plantations alone. It's what every investor wants to see! Bloody hell, it's the world upside down again.
Do you understand what I'm saying?