Yangzijiang - Yangzijiang raises target to $2.15 vs $1.64 by CIMB

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

CIMB lifts Yangzijiang (BS6.SG) target price to $2.15 from $1.64, based on 12x FY12 P/E, after increasing FY10-12 EPS estimates by 15%-42% to reflect higher order win, margin assumptions, says Dow Jones.

CIMB expects China-based shipbuilder to maintain above-20% gross margins next year on back of stable material prices, improved productivity: “The building of larger container vessels, which typically fetch better margins, should also boost overall profitability.”



Keeps Outperform call. Shares flat at $1.81.