- Yangzijiang Shipbuilding (SGX:BS6)'s management said it does not have plans (although there were initial thoughts) to expand capacity and/or outsource even as its 4 yards are operating near full capacity for now. We think Yangzijiang has a prudent track record in capex, and hence we expect Yangzijiang’s decision to expand will only be made if the strong demand for LNG carriers sustains into 2023 or if the risk of recession is eliminated.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- We estimate overall core shipbuilding gross margin to be 13%/17%/18% in FY22F/FY23F/FY24F. We believe margins are likely to continue to expand.
- Read more at SGinvestors.io.
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 2022-11-14
Read also CGS-CIMB's most recent report:
2023-09-20 Yangzijiang Shipbuilding - Inverse Direction Between Ship Prices & Steel Prices Driving Margin Upcycle.Previous report by CGS-CIMB:
2023-08-05 Yangzijiang Shipbuilding - Tight Capacity To Re-Rate Valuations.Price targets by 2 other brokers at Yangzijiang Target Prices.
Listing of research reports at Yangzijiang Analyst Reports.
Relevant links:
Yangzijiang Share Price History,
Yangzijiang Announcements,
Yangzijiang Dividends & Corporate Actions,
Yangzijiang News Articles
Yangzijiang Shipbuilding - Prudent Approach In Expansion
YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6)
