Yangzijiang

Yangzijiang Shipbuilding: In its latest contract update, Yangzijiang announced that it has secured 18 effective orders worth US$815m in Mar ’14. The 18 orders comprised of two 82,000DWT, one 208,000DWT bulk carriers and four 10,000TEU containerships converted from existing options, and 11 new orders for 82,000DWT bulk carriers. Scheduled for deliveries from 2015 to 2017, the contracts will not have any significant impact on the group’s earnings for FY14. Year-to-date, Yangzijiang has secured a total of 26 effective shipbuilding contracts with an aggregate value of US$1.07b, taking its order book to ~US$5.2 – US$5.5b. Valuations are undemanding with the stock trading at just 8.3x forward P/E versus closest peer Cosco Corp’s 30.1x. Overall, the street has 12 Buy, 6 Hold and 3 Sell call ratings with a consensus TP of $1.38.