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/.
