Yangzijiang - US$2 b contract coming?

limtan report 19/07/11
kfc1973-stock.blogspot.com/2011/07/yangzijiang-limtan.html

YZJ made announcements this morning -- this has assured the market! Now up 7 cents! $1.31 still cheap.

Yangzijiang Despite a +30% yoy earnings guidance for 1H11, we believe qoq earnings could come in 5-10% lower at about RMB870m from lesser deliveries of high-margin vessels. Interest income and forex gain could be the key drivers for 2Q11, contributing about 40% of earnings.

We continue to commend YZJ’s ability to keep its gross margins high at about 24% from execution of pre-crisis orders. We deem YZJ’s current valuation of 6x CY12 P/E as undemanding as it represents a 50% discount to Chinese peers of 12x and its own historical average of 11x since listing. Order book of about US$6bn is also firm with low risk of cancellation. Maintain OUTPERFORM; TP S$2.05.

From CIMB today!

DMG report 19/07/11
kfc1973-stock.blogspot.com/2011/07/yangz...ssing-investors.html
 
CIMB report 19/07/11
kfc1973-stock.blogspot.com/2011/07/yangzijiang-cimb.html

The rebound has been beautiful. It's another $1 more to go to Deutsche Bank target, as stated in this article today: [url=http://www.nextinsight.net
/story-archive-mainmenu-60/914-2011-chinahk-companies/4122-prc-internet-stocks-china-flooring-what-analysts-now-say]YANGZIJIANG, PRC INTERNET STOCKS, CHINA FLOORING: What Analysts Now Say...[/url]

At 1.34, the ship has gone down 7 cents. Will the management execute its share buyback scheme as it has promised to do if the ship goes too far down?