Broker Name: CGS International
Date of Report: February 27, 2026
Excerpt from CGS International report.
- Report Summary
- Yangzijiang Shipbuilding’s FY25 net profit grew 30% year-on-year, with margins sustained at 35% and a surprising 50% dividend payout, raising the dividend yield to 5.5%.
- The company has a robust US\$22.4bn orderbook and targets US\$4.5bn in new orders for FY26, while margin sustainability is expected through FY26 but may face pressure from FY28 onward due to lower vessel pricing and intense competition.
- Management is focused on green initiatives, with 74% of its order book comprising “green vessels,” and has resolved recent arbitration issues with minimal impact on valuation.
- CGS International maintains an “Add” rating with a higher target price of S\$4.95, citing earnings growth, attractive valuation, and potential for further re-rating if order wins exceed expectations.
- Downside risks include order cancellations and rising steel costs.
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.cgs-cimb.com
