“Since YZJ demerged its debt investments arm in late-April 2022, its share price has risen by over 31% and easily outperformed the Straits Times Index’s (STI) -1.4% return over the same period. As a result, YZJ’s share price, like some of the other outperformers in 2022, suffered from profit-taking in the first few trading days of 2023,” he explains.
UOB Kay Hian analyst Adrian Loh has upgraded Yangzijiang Shipbuilding (YZJ) to “buy”, with an unchanged target price (TP) of $1.55.
In his report dated Jan 10, the analyst says that YZJ’s “stellar” share price performance since the demerger of its debt investments arm, Yangzijiang Financial, in April 2022 has led to recent profit-taking on the stock early in the year. Loh also sees YZJ potentially doubling its dividends for FY2022 ended December and a potential US$400 million ($532 million) new order win on the cards.
