In a report released today, Adrian Loh from UOB Kay Hian maintained a Buy rating on Yangzijiang Shipbuilding (Holdings), with a price target of S$3.60.
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Adrian Loh has given his Buy rating due to a combination of factors that highlight the promising outlook for Yangzijiang Shipbuilding (Holdings). The company’s recent acquisition of US$0.92 billion in new orders significantly boosts its earnings visibility into 2027-28, demonstrating a strong future revenue stream. This order increase, which is 70% higher than the first half of 2025, underscores the company’s robust position in the market despite broader economic challenges.
Furthermore, the resilience of the container market, particularly in charter rates, supports the demand for containerships, which are a key product for Yangzijiang. The company’s stock is trading at attractive valuation metrics, with a forward PE ratio of 7.6x and an EV/EBITDA of 3.8x, alongside a strong return on equity and yield. These factors, combined with the company’s strategic positioning and market performance, underpin Loh’s confidence in recommending a Buy rating.
In another report released on September 1, DBS also reiterated a Buy rating on the stock with a S$3.80 price target.