In a Tuesday report, analyst Ho Pei Hwa says the plunge in YZJ’s share price presents a “window of opportunity to buy [into a] quality shipyard at a rock bottom valuation” of 0.6 times P/BV, which is at a 30% discount to global peers’ average P/BV of 0.9 times at its last traded price of 88.5 cents.
SINGAPORE (July 3): DBS is reiterating its “buy” call on Yangzijiang Shipbuilding (YZJ) with an unchanged target price of $1.82, which translates to 1.25 times price-to-book value (P/BV), approximately 0.4 standard deviation points below the historical mean of 2 times since listing.
This comes on the belief that the counter’s share price is set to stage a rebound after falling 50% YTD due to overblown concerns on foreign exchange (forex) and steel costs as well as a global trade war.
