Yangzijiang - Yangzijiang raised to Buy from Neutral by CIMB

Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
Research House: CIMB

CIMB upgrades Yangzijiang (BS6.SG) to Buy from Neutral, with target price raised to $1.54 vs $1.38 as broker increases earnings estimates by 0.4%-8.0% for FY10-FY11 to assume higher margins, according to Dow Jones.



Broker notes that 2Q earnings of RMB800.5 million ($160 million), +31.8% on-year in line with broker’s estimates but higher than consensus.



“We believe the market could reward YZJ for its sterling operating metrics and the short-term rebound in its container newbuild orders,” CIMB says.



Stock flat at $1.43.