Yangzijiang

Yangzijiang: there were questions on the block trade yday. DBSV believes it was due largely to the disposal by a non-executive director, Mr Yu Kebing. Mr Yu wasamong the pre-IPO investors of Yangzijiang and has been reducing its stake over the years. He has sold all his remaining 55.176m shares in Yangzijiang (or 1.44% stake) at $1.12. Hence, there should not be any overhang. In addition, he is a non-executive director and is not involved in daily operations of Yangzijiang. The fundamental of Yangzjiang remains intact. The house continues to favour Yangzijiang as the best proxy to shipbuilding recovery. No change to its BUY recommendation and TP $1.32.