Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
| Research House: CIMB | Price Call: BUY | Target Price: 1.30 |
CIMB Research cut its target price for China’s Yangzijiang Shipbuilding (Holdings) shares to $1.30 from $1.43 and kept its outperform rating, citing increased risk aversion triggered by the euro zone’s debt woes.
Yangzijiang shares were 1.4% lower at $1.025, and have gained about 12% so far this year, compared with the FT ST China Index’s 0.3% gain in the same period.
CIMB said that the 13.6% plunge in Yangzijiang in May was unwarranted and the shares are oversold, trading at 1.2 times price-to-book value.
“With no news of order cancellations, we foresee a rapid recovery in its share price if and when euro zone concerns dissipate,” CIMB said in a report.
Yangzijiang’s entry into rig building could be easier than that of other Chinese shipbuilders such as Cosco Corp Singapore and JES International Holdings, due to its strong track record, the broker said.
No comments:
Post a Comment