Yangzijiang

Yangzijiang: CLSA upgrading the counter to Buy, following its recent orders update, noting that Ytd, Yangzijiang has secured 26 shipbuilding orders and 2 semi-sub rig order YTD worth a total of US$1.9b which implies upside risk to the house and street estimates. Shipbuilding market continues to recover in terms of both new orders and prices with Clarksons estimating price to have risen by 8% over past 12 months while new orders were up most than 2x on a y/y basis in 4Q13. The house raises its order wins as well as margin assumption leading to 11% earnings upgrade for FY14. Subsequently, also raise SOTP to $1.40.