Yangzijiang Shipbuilding - CGS-CIMB Research 2022-09-08: Order Potential

Yangzijiang Shipbuilding - Order Potential

  • According to Tradewinds website and Clarksons database, Yangzijiang Shipbuilding (SGX:BS6) secured new orders of 12 16,000 TEU LNG dual-fuel containerships from Mediterranean Shipping Co (MSC) and four 32,000 DWT bulk carriers from Navibulgar in Aug-Sep 22.
  • According to Tradewinds, the 12 16,000 TEU LNG dual-fuel containerships are worth ~US$2.16bn (for delivery within 2024-2026). Tradewinds also reported that the four 32,000 DWT bulk carriers for Navibulgar are worth ~US$128m, which Clarksons noted are scheduled for delivery in 2024 (Feb, May, Aug and Nov). These US$2.29bn of order wins would bring orderbook to US$10.42bn (US$8.13bn as of 1H22).
  • However, these new order wins have not been officially announced by Yangzijiang Shipbuilding, so we suspect that they are still at the finalisation stage. We forecasted US$2bn of order wins for Yangzijiang Shipbuilding in FY22F (US$1.09m as of 1H22).
  • On 8 Sep 22, Yangzijiang announced that it obtained the GTT license, enabling it to construct vessels using the GTT Mark III membrane technologies. The GTT license moves Yangzijiang Shipbuilding up its technology value chain, expanding its offer to shipowners, thus opening opportunities to more LNG orders. It is also a step forward in Yangzijiang Shipbuilding’s ESG pursuit for greener vessels. (GTT is the technological expert in membrane containment systems for the transport and storage of liquefied gases and technological solutions for the energy transition.)
  • Yangzijiang Shipbuilding is our Singapore top stock pick. Yangzijiang's share price currently trades at 5.7x CY23F P/E and 0.9x CY22F P/BV vs its 2022-24F EPS CAGR of 16% and 16% CY23F ROE.

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 2022-09-08
SGX Stock Analyst Report ADD MAINTAIN ADD 1.630 SAME 1.630

Read also CGS-CIMB's most recent report:
2022-09-16 Yangzijiang Shipbuilding - GTT Is A Big Deal; LNG Orders Incoming?

Target prices by 3 other brokers at Yangzijiang Target Prices.
Listing of broker reports at Yangzijiang Analyst Report.

Relevant links:
Yangzijiang Share Price History,
Yangzijiang Announcements,
Yangzijiang Dividends & Corp Actions,
Yangzijiang News Articles


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