Broker Name: Maybank Research Pte Ltd
Date of Report: March 27, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Maybank initiates coverage on Yangzijiang Shipbuilding with a HOLD rating and a DCF-based target price of SGD 4.15, citing that the shipbuilding cycle and margins are past peak levels.
- Yangzijiang is supported by a strong balance sheet and a robust orderbook (~USD22.4b), ensuring medium-term revenue visibility but with earnings CAGR moderating to 5% for FY25–28.
- Gross margins have risen sharply (from 14% in FY21 to 34% in FY25), but are expected to normalize to around 29% by FY28 as pricing softens and competition rises.
- Order momentum is slowing, with new shipbuilding orders forecast to decline further in 2026 due to high orderbook levels, softer demand, and FX headwinds from a stronger RMB.
- While the dividend yield is attractive (5–6%) and supported by a 50% payout, further upside is limited due to capital needs for investments and capex.
- Risks include faster margin normalization, weaker demand, and FX fluctuations; upside risks are stable steel prices, stronger execution, and order reallocation from weaker yards.
- Maybank prefers Seatrium and Marco Polo Marine for better upside due to their offshore order exposure and margin recovery potential.
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 : https://www.maybank.com/investment-banking
