Yangzijiang Shipbuilding - Carved Out Basis, Cash Rich, Yield Play
- With the successful spin-off of Yangzijiang Financial (SGX:YF8), investors’ grouse of ‘shadow banking’ from its debt investments should dissipate, re-rating Yangzijiang Shipbuilding (SGX:BS6).
- We adjust our model to ‘carve-out’ Yangzijiang Financial, arriving at a new target price of S$1.63 for Yangzijiang Shipbuilding (10x CY23F P/E and implied 1.7x FY22F P/BV, supported by its 15% ROE).
- Strong cash conversion cycle should put Yangzijiang Shipbuilding in RMB4.9bn net cash by end-FY22F. We pencil in a dividend of S$0.05 (39% payout) for FY22F, a 5.7% yield.
- Key investment thesis in Yangzijiang Shipbuilding now lies on its strong shipbuilding execution, attractive valuations of 6x CY23F P/E, and potential higher dividend payout.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LIM Siew Khee CGS-CIMB Research | Izabella TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-05-04 2022-05-04
Previous report by CGS-CIMB:
2022-04-05 Yangzijiang Shipbuilding - The Wait Is Over
Target prices by 3 other brokers at Yangzijiang Target Prices.
Listing of broker reports at Yangzijiang Analyst Report.
Yangzijiang Share Price History,
Yangzijiang Dividends & Corp Actions,
Yangzijiang News Articles