Broker: Maybank Research Pte Ltd
Date of Report: May 21, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Stock: Yangzijiang Shipbuilding (YZJSGD SP)
- Action: HOLD
- Target Price: SGD 4.15 (+14%)
- Key Idea: Margins are under focus as demand shifts from large containerships to smaller vessels and tankers, which carry lower profitability. Management remains confident of meeting FY26 order targets (USD4.5b), but margin risks are rising due to vessel mix and FX. Current dividend yield is attractive at 5-6%, providing downside support.
- Highlights:
- YTD order wins at USD1.03b; orderbook remains sizeable at USD22.3b.
- Deliveries are on schedule, but new orders are dominated by smaller containerships and tankers.
- Management expects FY26 margins to be broadly comparable to FY25, but warns of potential decline.
- Dividend payout is likely to be sustained near the higher end of the range, supported by strong net cash position.
- Implications: Investors should focus on backlog expansion and margin defence as vessel mix shifts. Upside is tempered, but strong yield offers downside protection.
above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank website : www.maybank.com/investment-banking
