Company Coverage
Yangzijiang Shipbuilding (YZJSGD SP): Expect Strong 2H26 Order Win Momentum Underpinned By Active Enquiry Pipeline; Earnings Visibility Extending Into 2030
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$5.18
S$5.90
13.9%
S$5.30
Analyst
Highlights
- An investor meeting with YZJ was held during our Asian Gems Conference; the meeting was very well attended.
- Management sounded incrementally more positive, indicating confidence in meeting or even exceeding its US$4.5b contract win target for 2026. YZJ’s delivery slots for large vessels have been fully booked through 1H30.
- YZJ remains disciplined in the competitions for newbuild orders, guiding that margin levels of its new contract wins are expected to be similar to that of its existing orderbook.
- 2H26 margins are is expected to be steady vs 1H26, underpinned by a similar project mix, with limited impacts from the recently strengthening renminbi.
- YZJ offers strong medium-term earnings growth visibility, underpinned by capacity expansion (the Hongyuan yard to officially commence operations in early-27) and strong orderbook that extends into 2030.
- Maintain BUY on YZJ with our target price raised to S$5.90, now based on 10.1x 2028F PE (+2SD above historical mean). YZJ offers 4.9-5.8% dividend yields in 2026-28.
Analysis
- Management confident in meeting or even exceeding 2026 order win target. During the meeting, management expressed confidence in meeting or even exceeding the 2026 new order win target of US$4.5b. We note that the tone is incrementally more positive than one and a half months ago during the 1H26 results briefing (with US$1.96b contract wins in 7M26), when management expressed confidence in meeting its full-year target.
- Delivery slots for large vessels fully booked in 1H30, signalling good progress in new order wins. While Yangzijiang Shipbuilding (YZJ) does not routinely disclose new order wins in between quarterly briefings, management shared that YZJ’s delivery slots have been fully booked for 1H30. We note that this signals that YZJ is likely to have made some good progress in securing new contracts over the past one and a half months. According to shipbuilding industry news (unconfirmed by YZJ), YZJ is reported to have recently secured US$3.9b newbuild orders from CMA CGM (12 ultra-large containerships for about US$3b) and HMM (eight tri-fuel bulk carriers for US$0.8b-0.9b).
Highlights
- An investor meeting with YZJ was held during our Asian Gems Conference; the meeting was very well attended.
- Management sounded incrementally more positive, indicating confidence in meeting or even exceeding its US$4.5b contract win target for 2026. YZJ’s delivery slots for large vessels have been fully booked through 1H30.
- YZJ remains disciplined in the competitions for newbuild orders, guiding that margin levels of its new contract wins are expected to be similar to that of its existing orderbook.
- 2H26 margins are is expected to be steady vs 1H26, underpinned by a similar project mix, with limited impacts from the recently strengthening renminbi.
- YZJ offers strong medium-term earnings growth visibility, underpinned by capacity expansion (the Hongyuan yard to officially commence operations in early-27) and strong orderbook that extends into 2030.
- Maintain BUY on YZJ with our target price raised to S$5.90, now based on 10.1x 2028F PE (+2SD above historical mean). YZJ offers 4.9-5.8% dividend yields in 2026-28.
Analysis
- Management confident in meeting or even exceeding 2026 order win target. During the meeting, management expressed confidence in meeting or even exceeding the 2026 new order win target of US$4.5b. We note that the tone is incrementally more positive than one and a half months ago during the 1H26 results briefing (with US$1.96b contract wins in 7M26), when management expressed confidence in meeting its full-year target.
- Delivery slots for large vessels fully booked in 1H30, signalling good progress in new order wins. While Yangzijiang Shipbuilding (YZJ) does not routinely disclose new order wins in between quarterly briefings, management shared that YZJ’s delivery slots have been fully booked for 1H30. We note that this signals that YZJ is likely to have made some good progress in securing new contracts over the past one and a half months. According to shipbuilding industry news (unconfirmed by YZJ), YZJ is reported to have recently secured US$3.9b newbuild orders from CMA CGM (12 ultra-large containerships for about US$3b) and HMM (eight tri-fuel bulk carriers for US$0.8b-0.9b).
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$5.18
S$5.90
13.9%
S$5.30
Analyst
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