Yangzijiang: According to latest DB company visit note, YZJ’s TDR listing has helped it raise its profile in Taiwan esp among key shipping lines. YZJ is currently discussing with a Taiwanese shipyard for potential outsource work for 8,000 TEU containerships which, if it materializes will enable it to scale up its capabilities & add a new vessel line to its portfolio. It will be building a new Rmb500m dock to cater to 8000 TEU vessels & the facility will be ready by end 2011.
The group is still seeing strength in the containership market & is hopeful of more orders. While gross margins of 15% is still healthy, co estimates that every 5% appreciation in Rmb will lead to a 2% erosion in margins. TDRs have been trading at a 10-15% premium to its mother share price in Spore since listing on Sep 7. Stock is currently trading at 12.5x FY10 P/E. Support is at $1.67.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment