Yangzijiang Shipbuilding: Strong Order Backlog and Resilience Drive Buy Rating Despite Challenges

In a report released on May 26, Adrian Loh from UOB Kay Hian maintained a Buy rating on Yangzijiang Shipbuilding (Holdings) (YSHLF – Research Report), with a price target of S$3.29.

Adrian Loh has given his Buy rating due to a combination of factors that highlight Yangzijiang Shipbuilding’s strong position despite current challenges. The company boasts a substantial order backlog valued at US$23.2 billion, providing revenue visibility well into 2028. This significant backlog, coupled with robust margins and ongoing delivery progress, underpins the company’s resilience and potential for sustained earnings.
While the company experienced a weak start to 2025 in terms of new order wins, achieving only 5% of its annual target, the management’s strategic focus on long-term growth through yard and LNG investments remains intact. Despite global tariff uncertainties impacting new orders, the company’s ability to maintain solid shipbuilding margins and manage costs effectively contributes to the positive outlook. The analyst acknowledges potential share price volatility but emphasizes Yangzijiang Shipbuilding’s execution strength and earnings resilience as key factors supporting the Buy rating.

In another report released on May 26, DBS also reiterated a Buy rating on the stock with a S$3.80 price target.

YSHLF’s price has also changed moderately for the past six months – from $1.865 to $1.585, which is a -15.01% drop .