Book value

Yangzijiang Shipbuilding shares jump after order book value hits record high

By Yi Wei Wong

The shares of Yangzijiang Shipbuilding Holdings Ltd. rose sharply in early trading, after the value of its order book hit a record high, following recent order wins.

The stock rose 6.4% to 1.17 Singapore dollars (US$0.82) early Friday. The shares were trading as recently as S$1.17.

The Singapore-listed shipbuilding company recently landed orders for 22 ships, pushing its order book to $10.27 billion, its highest level ever. New orders indicate the company could be profitable through mid-2025, it said in a statement late Thursday.

“Stricter environmental regulations in recent years have resulted in a growing demand for green ships and we are poised to benefit from this growth,” said Ren Letian, CEO.

Latest order wins indicate the shipbuilder has secured $3.6 billion in year-to-date vessel sales, exceeding Yangzijiang’s fiscal year target of $2.0 billion, Citi analyst Jame Osman said in a note. It also exceeded Citi’s expectations that the company would secure $3.0 billion in orders during the fiscal year.

Citi said there were “several tailwinds” that could improve Yangzijiang’s profit margins, including a stronger dollar against the yuan, lower steel prices and increased demand for the Yangtze’s more expensive ships. shipbuilder.

The US investment bank has a buy rating and target price of S$1.36 for Yangzijiang shares.

Write to Yi Wei Wong at [email protected]