Wednesday, September 29, 2010

Yangzijiang - Yangzijiang target raised to $2.05 vs $1.65 by CLSA

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


CLSA lifts Yangzijiang (BS6.SG) target price to $2.05 from $1.65 after raising peer-based valuation multiple to 16.0s P/E from 11.5X to reflect firmer recovery in shipbuilding sector, says Dow Jones.

CLSA also increases forecasts for shipbuilder’s order win for FY10-12 by 50%-90%. Keeps Outperform call.



“Yangzijiang's specialization in the construction of smaller-sized handymax and panamax bulk carrier sub-segments should stand it in better stead as these vessels are more flexible than the larger capsize vessels and are more highly geared to Chinese coastal trade,” says the research house.



Shares +1.1% at $1.78. 

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