Tuesday, January 18, 2011

Yangzijiang - OCBC raises Yangzijiang to 'buy' from 'hold'

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


OCBC Investment Research has upgraded Singapore-listed Chinese shipbuilder Yangzijiang (YAZG.SI) to “buy” from “hold” and raised its target price to $2.36 from $2.04.



Yangzijiang delivered 48 vessels last year, better than 40 in 2009 and 27 in 2008, and OCBC said it expects the company to deliver 50 vessels this year, due to a healthy outlook for the Chinese shipbuilding industry.


The brokerage also said it expects Yangzijiang’s net profit to rise by 24% in 2010 and 14% in 2011.



“Unlike many Chinese shipyards, Yangzijiang emerged stronger from the 2008 crisis, evident from its acquisitions, improved execution abilities and increased publicity from its Taiwan depository receipts listing,” said OCBC in a report.



Yangzijiang shares have risen about 67% since the start of last year to close at $2.02 on Monday.





 

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