Yangzijiang: OCBC upgrades to Buy from Hold & raises target price to $2.36 from $2.04. Notes the company continues to secure new orders with the recent win of 15 shipbuilding contracts in 4Q10 totalling US$415.3m. This brings full year new order intake to about US$1.5b, excluding options worth another US$300m. Cites data released by China’s Ministry of Industry & IT also paint a relatively healthy picture of China's shipbuilding industry.
Adds, unlike many Chinese shipyards, YZJ emerged stronger from the 2008 crisis, evident from its acqns, improved execution abilities & increased exposure from its TDR listing. The house now pegs YZJ at 15x FY11F core earnings (from 13X), in line with industry average.
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