Date of Report: October 15, 2024
Broker: CGS International

Company Overview

Yangzijiang Shipbuilding is a leading shipbuilding company based in China, specializing in the construction of a wide range of commercial vessels. The company is one of the largest private shipbuilders in China and is recognized for its efficient and cost-effective shipbuilding capabilities.

Arbitration Outcome and Order Book Stability

Yangzijiang Shipbuilding recently faced an arbitration process, but the outcome of the arbitration has been confirmed to have no significant impact on the company’s order book. This ensures the stability of its operations and ongoing projects, allowing the company to continue executing its current orders without disruption.

• Arbitration Impact: No effect on the order book
• Order Book Stability: Secured

Business Outlook and Performance

Yangzijiang Shipbuilding remains well-positioned in the global shipbuilding market. Its robust order book and strong operational capabilities have helped the company maintain a solid growth trajectory. The company’s performance is expected to remain aligned with market expectations, reflecting its resilience amid external challenges.

Investment Recommendation and Valuation

The broker maintains an “Add” rating for Yangzijiang Shipbuilding, emphasizing the company’s strong market position and the stability of its order book, which has not been affected by the arbitration process. The target price remains unchanged based on a forward price-to-earnings (P/E) ratio.

• Rating: Add
• Target Price (TP): S$3.20
• Valuation Basis: Forward P/E

Conclusion

Yangzijiang Shipbuilding continues to demonstrate resilience with its stable order book and positive business outlook. Despite the arbitration process, the company remains on a solid growth path, making it a strong contender for investors seeking exposure to the global shipbuilding sector.

Report compiled by: CGS International, Malaysia