Funny, YZJ’s upcoming contract with Seaspan for a potential US$2.2 billion order (22X 10,000 TEU containerships, including options) doesnt seem to be appreciated by the market.
The stock has been sold down from $1.85 to $1.70...... Whatever happened to the argument that the deal is “arguably well-known to the market but not priced in as we believe investors remain sceptical on the risk-reward”?
This stock surprised with a fall from $1.90 to $1.50 now. Good bluey can still go below water.
Analysts continue to luv it however.
Kim Eng starts Yangzijiang at buy
SINGAPORE - Kim Eng Securities has initiated coverage of Singapore-listed Chinese shipbuilder Yangzijiang with a buy rating and target price of S$2.15.
Despite keen competition from domestic and international shipyards, Yangzijiang saw its shipbuilding orders jump by 200 per cent last year to US$1.38 billion, Kim Eng said in a report.
The brokerage also said Yangzijiang has taken steps to stay ahead of its competitors by boosting shipbuilding capacity and building energy-saving vessels, which enjoy larger margins.
'Near-term catalysts include robust order wins and a successful foray into the offshore marine sector,' said Kim Eng.
At 0230 GMT, shares of Yangzijiang were flat at S$1.53. The shares have fallen about 20 per cent since the start of the year. -- REUTERS
NO doubt a good stock -- the huge contract fr Seaspan is testimony to its capabilities. But the market sentiment just isnt favourable even to solid stocks.
SINGAPORE, June 23 (Reuters) - Chinese shipbuilder Yangzijiang <
YAZG.SI
> said on
Thursday it has signed a letter of intent to build eight container ships with a capacity to carry
10,000 twenty-foot equivalent units each for Peter Döhle Schiffahrts-KG.
Singapore-listed Yangzijiang did not disclose the value of the deal, but the agreement also
involved China Development Bank which may provide financing of up to $1 billion for those
vessels.
The Board wishes to update that the timely vessel delivery within 1H2011 has ensured that the Group is on schedule to meet its vessel delivery target of 65 in FY2011, compared with that of 50 in FY2010.
Therefore, the Board of Directors is confident to deliver not less than 30% growth in net profit
attributable to equity holders of the Company in the upcoming 1HFY2011 results announcement on 11 August 2011.
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