Yangzijiang

Yangzijiang: OSK-DMG reiterates Buy with TP $1.58, after the builder announced new contracts in Mar for 18 vessels worth US$815m. The house notes the outstanding momentum of order wins , with orderbook approaching pre-crisis levels. Believes high utilisation and series-building will support margins. The house continues to like Yangzijiang as the most efficient shipyard in China, combining the lowest cost structure with strict discipline on order intakes. Believes the stock is not expensive at 7-8x FY14-16e P/E, with sustainable div payout ratio of 4.7%.