Yangzijiang - Yangzijiang target raised to $2.05 by DBS Vickers

Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
Research House: DBS Vickers

DBS Vickers lifts Yangzijiang (BS6.SG) target price to $2.05 from $1.80, pegged at 14x FY10 P/E, after increasing FY10-11 earnings forecasts by 24%-26% to account for latest US$915 million ($1.2 billion) orders for 28 vessels, says Dow Jones.



“While we have anticipated some containership orders, Yangzijiang surprised us with the massive orders from bulk carriers as well, which was unexpected given the plunge of BDI in June-July,” says DBS Vickers.



Expects shipbuilder to clinch US$1.1 billion worth of contracts by end-2010 vs US$600 million forecast previously. Keeps Buy call. Shares +1.9% at $1.58.