- Despite macro headwinds, container markets remain resilient, with charter rates hitting post-COVID highs and potentially underpinning containership demand.
- Yangzijiang's share price trades at an attractive 2026F P/E and EV/EBITDA of 7.6x and 3.8x respectively with strong ROE and yield.
Contain Yourself: Netting Buoyant Orders.
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- Recall that in 1H25, Yangzijiang Shipbuilding won new orders for 12 container vessels and two bulk carriers for a total of US$537m, thus bringing year-to-date order wins to US$1.5b. The new contracts will not add to the company’s 2025 earnings but will instead add to its earnings between 2026-28 given that delivery will be between 2027-28.
Reslient container market.
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- We highlight that Clarksons’ Containership Timecharter Rate Index has seen a consistent upward trend, reaching new post-COVID highs of 196 points by early July, and further increasing to 197 and 198 points in subsequent weeks. This robust performance is primarily driven by tight vessel supply across all size sectors, particularly for units over 2,000 TEU, leading operators to focus on extensions and seeking alternative tonnage.
- We note that Yangzijiang Shipbuilding’s containership orders in 2025 have not been larger than 4,500 TEU.
Don’t look back in anger.
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