Yangzijiang cut to "hold", target cut to $1.33 by Maybank Kim Eng

Stock Name: YZJ Shipbldg SGD
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD

Research House: Maybank Kim Eng

Price Call: HOLD

Target Price: 1.33

SINGAPORE (Feb 26): Maybank Kim Eng has downgraded Yangzijiang Shipbuilding to "hold" from "buy", citing a lack of catalysts, and cut its price target to $1.33 from $1.40 after lowering its 2015 and 2016 earnings per share estimates by 5%.

"We now expect Chinese commercial shipbuilding to recover only in 2016," Maybank Kim Eng analyst Yeak Chee Keong wrote in a note today.

"This is because current bulk and container shipping supply-demand forces do not favour further capacity growth. Shipbuilding prices, which started to recover in Mar 2013, have reversed course."