- In 3Q23, Yangzijiang Shipbuilding (SGX:BS6) won US$770m of new orders for 14 vessels, including six 40K CBM LPG carriers, six 50K DWT MR oil tankers, and two 75K DWT LR1 oil tankers, for delivery in 2026 and 2027. We expect 2H23F orders of US$1bn-1.5bn.
Rebound in oil tanker market driving order wins
- - Read this at SGinvestors.io -
- Yangzijiang's management noted that the current tanker charter rates are at a good level to support customers’ ship costs, but future ship demand would depend on further developments in the global geo-political situation.
No delays to existing orders, but liners may rethink future strategy
- - Read this at SGinvestors.io -
- From its conversations with customers, Yangzijiang noted that containership liners are starting to see higher-than-expected methanol prices driven by methanol’s high production costs and persisting supply chain issues.
- Management expects owners to refocus on LNG dual-fuel vessels due to these ships’ reliable technology and ~25-year expected lifespan. Margins for both types of vessels are similar, according to Yangzijiang.
- Low steel input costs and favourable forex trends continue to support margins. We expect overall gross margins of 19.5%/23%/24% for FY23F/24F/25F.
LNG carriers are a lower priority
- 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 | https://www.cgs-cimb.com 2023-11-03
Previous report by CGS-CIMB:
2023-09-20 Yangzijiang Shipbuilding - Inverse Direction Between Ship Prices & Steel Prices Driving Margin Upcycle.
Price targets by 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
