Broker: UOB Kay Hian
Date of Report: Monday, 06 April 2026
Excerpt from UOB Kay Hian report:
Report Summary
- Stock: Yangzijiang Shipbuilding (YZJSGD SP)
- Action: BUY (Maintained)
- Target Price: S\$4.75 (raised from S\$4.60)
- Key Idea: Yangzijiang Shipbuilding (YZJ) started 2026 with a strong order momentum, securing US\$0.98b in new orders—mainly containerships—bringing its total orderbook to US\$23b, providing earnings visibility through 2029.
- Strategic Highlight: YZJ acquired a 10% stake in Poseidon (holding company of Seaspan, a major containership lessor) for US\$825.7m. While priced at a premium, this move enhances vertical integration, order visibility, and stability, mitigating volatility from traditional shipbuilding cycles. It is expected to boost 2025 pro forma net profit by around 5%.
- Valuation: The stock’s 2026F PE is 8.6x, trading below the 10x target PE, which is 2 standard deviations above its 10-year average. ROE is robust at nearly 28% for 2026, supporting the valuation.
- Catalysts: Execution of its orderbook, maintaining high shipbuilding margins over 30%, and new order wins for higher-margin vessels.
Above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can be the first to access the full report from the UOB Kay Hian website: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc
