Analyst Lim Siew Khee of CGS International reiterated a Buy rating on Yangzijiang Shipbuilding (Holdings), retaining the price target of S$4.95.
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Lim Siew Khee has given his Buy rating due to a combination of factors, including Yangzijiang Shipbuilding’s resilient order outlook and disciplined execution. Management is maintaining a robust US$4.5bn order target amid containership softness, supported by healthy inquiry levels in oil and chemical tankers and additional capacity coming onstream from the Hongyuan yard, which should underpin medium‑term growth.
Moreover, the forthcoming stake in Poseidon, Seaspan’s holding company, is expected to be mildly earnings‑accretive and may unlock incremental orders, while Yangzijiang preserves a strong net cash position of about Rmb10bn and an attractive dividend yield of roughly 5.8%. Lim keeps his 34% FY26 gross margin forecast intact given a relatively stable cost base and sees current share price weakness as an entry point, reiterating an unchanged S$4.95 target price based on a valuation discount to global peers and potential upside from stronger‑than‑expected order wins.
In another report released yesterday, DBS also reiterated a Buy rating on the stock with a S$4.55 price target.