Yangzijiang

Yangzijiang: has been awarded "High Tech Enterprise" Status, which lower its corporate tax rate from 25% to 15% over three years. Other near term re-rating catalysts are: i) company exercising options for 10,000 TEU container vessels, and ii) receipt of deposit for two semi sub rigs The stock has been oversold on margin fears , chairman's potential retirement in 3 yrs, and concerns about the default risks in CHinese property companies to which YZJ lends 44% of its HTM portfolio. NEvertheless, OSK-DMG likes YZJ for being the strongest shipbuilder in China in a recovering industry. Maintains Buy with higher TP of $1.58 (from $1.55)