Yangzijiang, Cosco, JES

DB highlighted several reasons for new order pickup at Chinese yards: 1) increased Chinese domestic ordering due to stimulus package which allows Chinese buyers to benefit from 17% subsidy from ship prices; 2) shift of orders from small struggling yards to larger established ones; 3) lower vessel prices (-30% since 200 prompting 85% surge in new vessel orders esp bulkers (69% of total); 4) improved financing from Chinese lenders; and 5) higher loan-to-value for new vessels vs used ships. YZJ is rated a Buy with TP of $1.75 and Cosco a Hold with TP of $1.58.