Nonetheless, the company's earnings growth and order outlook remain intact and Yangzijiang remains undervalued relative to regional peers, says DBS.
DBS Group Research has kept its "buy" and $3.80 target price on Yangzijiang Shipbuilding, following news that it has cancelled orders worth US$180 million placed by a customer facing US sanction risk.
In a note on Sept 29, DBS believes that there's a potential knee-jerk reaction to the contract cancellation news, especially after a good rally recently towards the high prior to US port fees news.
