Affirmed by the company’s ytd order wins of US$3.32 billion ($4.48 billion) with deliveries scheduled in 2027, the analysts have subsequently upped their order win target for YZJ to US$5.5 billion for 2024. This is despite YZJ’s conservative guidance of US$4.5 billion for 2024.
CGS International’s (CGSI) Lim Siew Khee and Meghana Kande have maintained their “add” call on Yangzijiang Shipbuilding (YZJ) and increased their target price by 39 cents to $2.35 after an analyst briefing on May 28.
At the briefing, which took place a day after CGSI’s initial report, YZJ explains that the key positive surprise for ytd orders was contributed by containerships backed by strong freight rates, which in turn boost ship owner’s profitability leading to increased newbuild orders.
