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• Yangzijiang Shipbuilding did not disappoint. Its 9Q update showed it has blown past its FY2026 order-win target, chalking up US$6.98 billion of new orders in the first 10 months against a full-year target of US$4.5 billion.
The latest haul includes 12 ultra-large 24,000-TEU LNG dual-fuel containerships and 10 large 210,000-DWT bulk carriers, marking the return of major vessel orders after a relatively quiet spell.
That has lifted YZJ’s orderbook to a record US$26.3 billion, giving the group revenue visibility into mid-2030.
DBS Group Research says the comeback in ultra-large vessel orders supports its view that the earlier lull was due more to tight yard availability than weak customer demand.
With more capacity coming onstream and deliveries progressing, the broker believes YZJ is well placed to sustain strong earnings and elevated margins.
DBS has therefore reiterated BUY and its S$6.60 target price, arguing that recent share-price weakness presents another entry opportunity.
• Read excerpts of its report below .....
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Excerpts from DBS Group Research report
Analyst: Ho Pei Hwa
| 3Q26 business update - YTD order wins beat target; order book hits record high |
• YTD order wins reached USD6.98bn, exceeding the FY26 target of USD4.5bn, led by ultra-large LNG dual-fuel containerships and large bulk carriers
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YANGZIJIANG
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Share price:
$4.59
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Target:
$6.60
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• Orderbook rose to a record USD26.3bn, providing revenue visibility to mid-2030; green vessels account for 67% of orderbook
• Deliveries on track; Hongyuan yard (+20% capacity) ramp-up supports the next phase of growth, with full operations expected in early 2027
• Recent weakness offers buying opportunities; attractive 6% dividend yield; maintain BUY with SGD6.60 TP
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| Stong order replenishment lifts orderbook to new heights |
Yangzijiang secured USD6.98bn of new orders in 10M26, comfortably exceeding its USD4.5bn full-year target.
New wins comprised 53 containerships, 13 bulk carriers, 18 oil tankers and three gas carriers.
Notably, the group secured orders for twelve 24,000-TEU LNG dual-fuel containerships and ten 210,000-DWT bulk carriers during the quarter, its first ultra-large vessel wins since end-2024.
The return of ultra-large vessel orders is consistent with our view that the earlier order mix reflected delivery-slot constraints rather than a lack of demand for larger vessels.
Outstanding orderbook increased to USD26.3bn from USD22.4bn at end-2025, with containerships contributing USD19.4bn, or c.74% of value.
Execution remains on track, with 47 vessels delivered against 58 scheduled for FY26. YAMIC’s USD3.12bn backlog remains skewed towards higher-value gas carriers, which account for c.53% of contract value.
| Shipbuilding outlook remains constructive. |
Management expects newbuild demand to remain firm, supported by fleet renewal, dual-fuel adoption and trade-route disruptions that absorb shipping capacity.
Ho Pei Hwa, analystWith industry delivery slots largely committed through 2029, Yangzijiang remains selective, prioritising orderbook quality and contract terms.
Hongyuan (+20% capacity) has commenced operations and is expected to become fully operational in early 2027, while the RMB2bn LNG terminal project remains scheduled for completion in 1H27.
Potential reactivation of the Runze expansion plan (+30% capacity) would provide an additional growth avenue beyond 2029.
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We expect shipbuilding margins to remain elevated, supported by stable newbuild prices and steel costs, although CNY appreciation remains a headwind.
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Stock price
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$4.65
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52-week range
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$3.16-$5.41
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Market cap
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$18.3 B
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52-week change
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35.4% |
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PE (ttm)
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10.1
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Dividend yield (ttm)
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4.4%
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P/B
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2.7
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Valuation is undemanding at 8x FY27 PE and 2.1x PB, complemented by a c.6% dividend yield.
Recent share-price weakness offers a buying opportunity.
Reiterate BUY and TP SGD6.60, implying 3x PB or 12x PE.
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See also: This Multi-Continent Business Delivers Record Revenue, Record Profit, Record Dividends, Record Stock Price
