Yangzijiang

Yangzijiang: Entered into 13 new shipbuilding orders in 4Q14, which include nine effective orders worth US$388m and four new options worth US$122m. This bring the group’s total order wins for 2014 to US$1.8b, and its total order book to ~US$4.5b. Yangzijiang CEO guided that the group did a good job in 1H14 catching the wave on the market; with new orders recording a strong US$1.4 billion worth of contracts, and filling up the group’s yard capacity for the next two years. As such in 2H14, the group had strategically turned more selective on new order taking. The group aims to optimize the use of yard resources, and prioritize orders with more favourable terms, while building larger and more efficient vessels. Yangzijiang added that the 10,000TEU containerships, offering outstanding cost efficiency in shipping, has become one of Yangzijiang’s flagship products, and will continue to gain attention from ship owners, and contribute to the future growth of the group, along with its other endeavors. Separately, a foreign broker has initiated coverage on Yangzijiang this morning with a Buy call and TP of $1.56, highlighting the group to record higher earnings ahead, a rebound in new orders and higher dividend payout.