Broker Name: CGS International
Date of Report: February 27, 2026
Excerpt from CGS International report.
Report Summary
- Yangzijiang Shipbuilding (YZJSB) reported FY25 net profit of Rmb8.6bn, up 30% year-on-year, with a maintained shipbuilding margin of 35% and a higher-than-expected 50% dividend payout, resulting in a 5.5% dividend yield.
- The company has set an ambitious US\$4.5bn order win target for FY26F, supported by ongoing strong orderbook of US\$22.4bn and upcoming capacity expansion at its Hongyuan yard.
- Management expects shipbuilding margins to remain robust in the near term, although containership prices are trending down 5-10% year-on-year and margin pressure may arise from FY28F as weaker-priced projects get recognized.
- Potential additional gains may come from reselling previously cancelled LNG carriers and oil tankers.
- The target price for YZJSB is raised to S\$4.95, with a reiterated ‘Add’ rating, citing strong earnings growth, competitive forward P/E, and re-rating potential from higher order wins and currency movements.
- Key risks include order cancellations and rising steel costs; no ESG premium/discount applied despite recent controversies, as the company is making progress in green vessel and factory initiatives.
- Financially, YZJSB remains in a strong net cash position, with continued revenue growth, stable margins, and attractive returns on equity and capital projected over the next few years.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgsi.com
