YACAF - Yancoal Australia: It's All About Capital Allocation

2024-05-16 00:05:05 ET

Summary

• Yancoal Australia is less likely to do buybacks for now. The company wants to maintain its free float to increase the chances of index inclusion for its Australian shares.
• YACAF has a substantial cash position that gives it the financial capacity to engage in inorganic growth investments.
• I maintain my Hold rating for Yancoal Australia following an assessment of the company's capital allocation approach.

Elevator Pitch

I have a Hold rating for Yancoal Australia Ltd ( YACAF ) [YAL:AU] [3668:HK] shares. My earlier February 28, 2024, update drew attention to a news report regarding its second-largest shareholder Cinda International's sale of shares in the company, and Yancoal Australia's full-year fiscal 2023 performance....

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