Analyst Lim Siew Khee of CGS-CIMB reiterated a Buy rating on Yangzijiang Shipbuilding (Holdings), with a price target of S$3.90.
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Lim Siew Khee’s rating is based on the positive outlook for Yangzijiang Shipbuilding (Holdings), driven by several key factors. The company reported a robust shipbuilding gross margin of 35% in the first half of 2025, which exceeded expectations due to lower steel costs. This strong performance led to an upward revision of gross margin forecasts for the coming years.
Additionally, Yangzijiang Shipbuilding has seen an increase in client interest, with letters of intent for new orders amounting to approximately US$2 billion. The company has raised its order win target to US$3.7 billion for the fiscal year 2025, supported by a strong order book and increased earnings per share forecasts. Despite some challenges, such as competition and potential steel price increases, the company is well-positioned to capitalize on its current capacity and market demand, justifying the Buy rating.
According to TipRanks, Siew Khee is a 4-star analyst with an average return of 11.9% and a 60.94% success rate.
In another report released today, DBS also reiterated a Buy rating on the stock with a S$3.80 price target.