Yangzijiang Shipbuilding (Holdings)

The shipbuilding business sits on a record order book of US$8.65 billion as at Nov 1

CGS-CIMB views the potential listing and Yangzijiang's ability to secure orders will drive its share price in the near term.

he company is now sitting pat on a record orderbook of US$8.65 billion for 167 vessels

The group has secured shipbuilding contracts with a total value of US$4.01 billion y-t-d.

The group has, year-to-date, secured a total of 60 shipbuilding contracts worth US$3.04 billion.

Ren Letian, executive chairman and CEO of Yangzijiang, considers the total new order wins as “decent even for a normal year".

Year to date, it has secured contracts totalling US$834 million to build 29 vessels.

The offshore and marine (O&M) sector, which has experienced a prolonged downturn since the 2014 crash in crude oil prices, is unlikely to see a recovery any time soon.

SINGAPORE (July 18): Yangzijiang Shipbuilding is diversify its business and venturing into new areas of expertise given an upturn in the offshore & marine industry is nowhere to be seen.

SINGAPORE (March 1): Yangzijiang Shipbuilding, the China-based shipbuilder, reported FY18 earnings of RMB3.6 billion ($727 million), up 23% from a year ago. This comes after 4Q18 earnings rose 84% to RMB 1.25 billion from the same period a year ago.