Yangzijiang: BOA-ML maintains Buy with $2.49 target. Notes stock valuation currently low at 10x FY11E P/E, vs peers at 14x. Believes order book execution risk is low, following a meeting with mgt; expects stock to rerate as the shipyard delivers on FY10-11 earnings. Likes YZJ for its leverage to the upcoming containership order upswing (56% revenue contribution in FY09)…
Believes institutional interest should continue to rise, as the mkt becomes increasingly aware of YZJ as a large-cap shipyard (now US$5b mkt cap, vs US$1-3b perceived by most investors in internal poll).
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