Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
Research House: Credit Suisse
Credit Suisse says “Yangzijiang is a strong contender” for the order. It notes, at its FY10 results analyst briefing, management confirmed it was in discussion with Seaspan for a large order. It also says YZJ “is one of the few yards in China that has a vessel design for the 10,000 TEU containership,” and among the few Chinese yards that have the capacity.
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
Research House: Credit Suisse
Yangzijiang Shipbuilding (BS6.SG) is +1.8% at $1.69 in active trade, likely on hopes of a large order win after ship owner Seaspan says it has signed a letter of intent “with a leading Chinese shipyard for a significant order of New Panamax 10,000 TEU vessels.”
Credit Suisse says “Yangzijiang is a strong contender” for the order. It notes, at its FY10 results analyst briefing, management confirmed it was in discussion with Seaspan for a large order. It also says YZJ “is one of the few yards in China that has a vessel design for the 10,000 TEU containership,” and among the few Chinese yards that have the capacity.
Credit Suisse reckons a LOI rather than a firm contract has been signed to allow the customer time to arrange financing. It adds, management indicated it expects gross margin to be 10%, “which should improve as it moves up the learning curve.”
Credit Suisse maintain its Outperform rating and $2.40 target. A spokesman for Yangzijiang declined to comment.
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