Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
With a large cash position to cushion a possible downturn and a net outstanding order book of $6 billion, IIFL said it expects Yangzijiang’s core earnings to grow at an annual average rate of 9% over 2011-2013.
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
| Research House: IIFL | Price Call: BUY | Target Price: 1.63 |
IIFL has initiated coverage of Singapore-listed Chinese shipbuilder Yangzijiang (YAZG.SI) with an Add rating and a target price of $1.63.
For IIFL, Add means the stock is expected to give a positive return of above 10% within 12 months.
For IIFL, Add means the stock is expected to give a positive return of above 10% within 12 months.
With a large cash position to cushion a possible downturn and a net outstanding order book of $6 billion, IIFL said it expects Yangzijiang’s core earnings to grow at an annual average rate of 9% over 2011-2013.
“Yangzijiang is one of the most efficient shipbuilders in China. The company is among the pioneers to break the dominance of Korean yards in large containership building,” said IIFL in a report.
It also noted that although the bulk carrier market is facing weaker new orders due to over-supply in the medium term, the container ship market is recovering.
Yangzijiang’s recent container ship orders from Seaspan provides visibility to its order book till 2015, IIFL said.
At 10:04 a.m., shares of Yangzijiang were 2% higher at $1.43, but have fallen by about 26% since the start of the year.
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