Yangzijiang Shipbuilding (Holdings), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Lim Siew Khee from CGS-CIMB reiterated a Buy rating on the stock and has a S$4.51 price target.
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Lim Siew Khee has given his Buy rating due to a combination of factors including Yangzijiang Shipbuilding’s strong order book and competitive valuations. Despite facing increased competition from second-tier Chinese yards, the company has managed to secure significant orders, with its order book standing at US$22.8 billion as of the third quarter of 2025. This substantial backlog provides a solid foundation for future revenue.
Furthermore, Lim Siew Khee highlights the company’s ability to maintain stable margins, aided by low steel costs and strategic cost management. The shipbuilder’s gross margin forecast has been raised to 35% for both 2025 and 2026, reflecting confidence in its cost structure. Additionally, the stock’s valuation appears attractive, trading at a significant discount compared to its peers. These factors collectively underpin the Buy rating, with a target price set at S$4.51.
In another report released yesterday, DBS also reiterated a Buy rating on the stock with a S$3.80 price target.