Yangzijiang Shipbuilding - UOB Kay Hian 2024-08-14: Powering Onwards & Upwards

• Maintain BUY with a higher Yangzijiang's target price of S$3.40 as a result of upgrades in earnings forecasts for 2024-26 of 17-25%.
• Given its remarkable US$8.5b of new orders in 1H24, we have upgraded our order win expectation to US$10b (previously US$7b).

Stellar performance with shipbuilding margins the highlight.

• - Read this at SGinvestors.io -
• Importantly, Yangzijiang reported stronger-than-expected shipbuilding margins of 25.9% (2023: 21.9%) with management guiding that current margin levels are sustainable.

Surpassing prior high for new order wins.

• - Read this at SGinvestors.io -
• As at end-1H24, Yangzijiang had a US$20.2b orderbook for 224 vessels of which 70% are green vessels.
• While management was unmoved in guiding for a higher new-order win number for end-24, we have upgraded our estimate to US$10b from US$7b previously.

Looking at new order wins for 2Q24.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-05-26 Yangzijiang Shipbuilding - Big Backlog – But New Order Wins Needed In The Medium Term.

Previous report by UOB:
2025-02-28 Yangzijiang Shipbuilding - Solid 2024 Results With Shipbuilding Margins The Highlight.

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 Dividend Payout Dates & Corporate Actions,
Yangzijiang News