Yangzijiang Shipbuilding - DBS Research 2026-07-13: Expect Solid 1H26; Watch For Order Wins

• Yangzijiang Shipbuilding (SGX:BS6) is scheduled to release its 1H26 results on 6 Aug (after market, see earrnings calendar). We expect another solid set of results, with net profit rising 8-10% y-o-y to RMB4.5-4.6bn.

Expect near double-digit earnings growth in 1H26.

• - Read this at SGinvestors.io -

• We continue to see upside risk to margins (currently assumed to be flattish y-o-y) as higher-priced contracts progressively flow through the P&L, while ongoing productivity improvements and greater operating leverage from the Hongyuan yard help mitigate FX headwinds (~4% y-o-y USD depreciation against RMB).

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Robust newbuild ordering momentum.

• Newbuild ordering has been exceptionally strong in 5M26, broadly matching 2024's near-record pace, driven by robust tanker contracting, with VLCC orders reaching their highest level in decades as energy security concerns.

• Containership ordering has also remained resilient, particularly in the small- and mid-sized segments. As a result, the global orderbook has expanded 17% y-o-y to near record levels as of early Jun-2026. This is a positive read-through for Yangzijiang’s order wins the past 2 months.

• The group targets US$4.5bn order wins for FY26, which seem lagging with only ~US$1bn or 22%secured as of mid-May. Thus, any sizeable contract wins - especially those >US$1bn - alongside upcoming results would further boost confidence and sentiment.

Undemanding valuation belies strong growth and dividend yield prospects.

• Read more at SGinvestors.io.

Pei Hwa Ho DBS Group Research | https://www.dbs.com/insightsdirect/ 2026-07-13

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