She expects the company to secure more orders for LNG carriers, which has high technical barriers to entry and could be a significant growth opportunity.
Ho Pei Hwa of DBS Group Research has raised her target price for Yangzijiang Shipbuilding from $2.88 to $3.80 while keeping her "buy" call, as she expects better earnings from not just a bigger order book but also expanding margins.
In her Jan 31 note, Ho says that the company's improving corporate governance and pivot towards cleaner vessels such as dual-fuel containerships and gas carriers, which now account for around 70% of its orderbook, could draw more interest from ESG funds.
