Yangzijiang Shipbuilding - CGS-CIMB Research 2021-02-09: CNY Hong Bao Of US$1.3bn

YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6) | SGinvestors.io YANGZIJIANG SHIPBLDG HLDGS LTD (SGX:BS6)

Yangzijiang Shipbuilding - CNY Hong Bao Of US$1.3bn




US$1.3bn of contracts, making inroads with Chinese

  • See Yangzijiang's announcement on 8-Feb. Included in the US$1.3bn order is a first time win of Yangzijiang from Shanghai Zhonggu Logistics (中谷物流), one of the largest domestic shipping liners in China, for 10 units of 4,600TEU containerships.
  • We are positive on the fact that Yangzijiang is making firm inroads with Chinese companies and competing head-on with state-owned yards. Some of the key wins since 2020 have been with major Chinese companies, including SITC, Zhejiang Seasport Shipping, Shanghai Ganglu Shipping and Shanghai Baosteel.
  • Other containership orders disclosed in this announcement are 4 orders of its ultra-large, 24,000TEU containerships as well as 8 units of 1,800TEU containerships.
  • Yangzijiang also has orders for some bulk carriers, which include an 82,300DWT bulk carrier, 4 units of 66,000DWT bulk carriers and 2 units of 31,800DWT great lake bulk carriers.


Strong order momentum; Yangzijiang's order book at ~US$3.7bn-3.9bn

  • With the above wins, we estimate Yangzijiang’s order book to be at about US$3.7bn-3.9bn. Yangzijiang last reported a US$2.6bn orderbook in early-November. Since then, it won another ~US$730m of contracts in Nov-Dec and closed 2020 with ~US$1.8bn of new orders, enhancing its earnings visibility for the next two years.
  • We have factored in US$1.8bn of new orders for FY21F for now.

Reiterate ADD and target price of S$1.37; 4Q20F could see forex loss






LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2021-02-09
SGX Stock Analyst Report ADD MAINTAIN ADD 1.370 SAME 1.370



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