Yangzijiang

Yangzijiang: CS downgrades to Neutral following the strong share price performance year-to-date, as the house believe its prospects of benefiting from improved newbuild orders have been priced in. At a P/B of 1.26x and 2015E P/E of 7.4x, Yangzijiang continues to trade at a significant discount to peers. However, expect nearterm overhang from 330 mn of warrants exercisable at Rmb6.60 ($1.42), representing a potential dilution of 8.6%.