Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
DMG & Partners Securities in a Jan 18 research report says: "Yangzijiang (YZJ) is venturing into ship-owning activities in a joint venture with Peter Dohle. Management explained that the move is to help alleviate the pressure on fewer shipbuilding orders.
"We believe the move is not likely to be well received as more cash are channelled into non-core investments. We see high risk in moving to the ship-owning business as dry bulk charter rates are likely to remain weak given strong supply pressure.
"We are negative on the commercial shipbuilding sector and shipping sector but share price downside should be supported by its net cash balance sheet and yield of 4.4%. Our unchanged target price of $1.04 implies FY12F P/E of 5.6x. MAINTAIN NEUTRAL."
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
| Research House: DMG | Price Call: HOLD | Target Price: 1.04 |
DMG & Partners Securities in a Jan 18 research report says: "Yangzijiang (YZJ) is venturing into ship-owning activities in a joint venture with Peter Dohle. Management explained that the move is to help alleviate the pressure on fewer shipbuilding orders.
"We believe the move is not likely to be well received as more cash are channelled into non-core investments. We see high risk in moving to the ship-owning business as dry bulk charter rates are likely to remain weak given strong supply pressure.
"We are negative on the commercial shipbuilding sector and shipping sector but share price downside should be supported by its net cash balance sheet and yield of 4.4%. Our unchanged target price of $1.04 implies FY12F P/E of 5.6x. MAINTAIN NEUTRAL."
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