Saturday, July 5th, 2025

Yangzijiang Shipbuilding

Yangzijiang Shipbuilding (YZJ) Report:

  • Stock: Yangzijiang Shipbuilding (Holdings) Ltd.
  • Ticker: SGX: BS6
  • Price: $2.48
  • Market Capitalization: $9.8 billion
  • PE Ratio: 8-9x PE
  • Dividend Yield: Just under 3%
  • Target Price: $3.20 (Bloomberg consensus)
  • Potential 1-Year Return: 27%

Joint Venture Announcement:

Yangzijiang Shipbuilding announced a joint venture with Tsuneishi Holdings Inc. (THD) to acquire a 34% equity stake in Tsuneishi Group (Zhoushan) Shipbuilding Co., Ltd. (TZS) through a private share allotment. The acquisition price is RMB833,050,297, reflecting TZS’s audited net asset value as of December 31, 2023. The acquisition will be funded from internal resources, making TZS an associate company of Yangzijiang.

Details on the Joint Venture:

  • Company Background:
    • Yangzijiang Shipbuilding is a globally leading shipbuilding group based in China and a component of the Straits Times Index (STI).
    • The group has a history of collaborations with Tsuneishi through their joint venture, Jiangsu Yangzi-Mitsui Shipbuilding Co., Ltd.
  • Purpose: The joint venture aims to combine the expertise of both parties in research, development, shipbuilding, and supply chain capabilities. It is expected to advance shipbuilding technologies and maximize efficiencies.
  • Commentary from Leadership:
    Executive Chairman and CEO, Mr. Ren Letian, expressed optimism for the partnership, emphasizing the synergies between the two companies.

Stock Performance:

  • YTD Performance: 67% increase, making it the top-performing stock among the STI components.
  • Outlook: The company’s strong financial position and a robust order book, combined with its focus on environmentally friendly shipbuilding, provide a favorable long-term outlook despite the strong recent performance.

    Thank you

This Singapore stock has delivered annual total returns of 9.2% since 2019

Fortress Minerals has been a standout performer for investors, particularly those who bought in at its IPO and stayed the course. Since March 2019, the stock has delivered annual total returns of 9.2%, significantly...

Beshom Holdings Bhd: Navigating Sales Growth Amidst Economic Recovery

Date of Report: September 30, 2024Broker: CGS International Securities Overview of Beshom Holdings Bhd Beshom Holdings Bhd reported its 1QFY25 financial results with core net profit amounting to RM2.6 million. This is below expectations,...

Bullish Momentum: Rex International Holding Ltd Rebounds with Strong Technical Indicators

Date of Report: October 7, 2024 Broker Name: CGS-CIMB Securities Company Overview Rex International Holding Ltd is a production and exploration oil company with concessions in Norway and Oman. The company is listed on...