Broker Name: CGS International
Date of Report: May 20, 2026
Excerpt from CGS International report:
Report Summary
Stock Focus: Yangzijiang Shipbuilding
Ticker: YZJSGD SP
Action: Add (Buy call)
Target Price: S\$4.95
Current Price: S\$3.94
Upside: 25.6%
Key Ideas:
- Order Wins: Management maintains an ambitious US\$4.5bn order target despite headwinds in the containership market. Stronger enquiries for oil and chemical tankers, with oil tankers accounting for 15% of YTD order wins.
- Margin Outlook: Gross margin may see slight pressure but is forecasted to remain strong at 34% for FY26, insulated from global cost shocks.
- Strategic Stake: Acquisition of a 10% stake in Poseidon Acquisition Corp (Seaspan’s holding company) expected to strengthen customer relationships and drive future orders.
- Yield: Attractive dividend yield at 5.8% and stable net cash position post-acquisition.
- Risks: Weaker RMB and potential order cancellations, though none reported so far.
Call to Action: The report reiterates a Buy recommendation (“Add”) with a target price of S\$4.95, highlighting a significant upside and strong order pipeline. Investors should focus on Yangzijiang Shipbuilding for its resilient execution, potential earnings upside from new strategic relationships, and attractive dividend yield.
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
