Yangzijiang

Yangzijiang: Deutsche is lowering its estimates for Yangzijiang amid headwinds, but still believes the Chinese shipbuilder remains well positioned.

Overall for the Chinese shipbuilding industry, 2015 was challenging new vessel contracting declined by about 40%, with newbuild prices down by 5-6%.

2016 appears to be yet another challenging year, given several headwinds which include the record low BDI, weak demand for new vessels, lower newbuilding vessel prices, and limited financing available.

Still, the house thinks Yangzijiang is well-positioned as the Chinese shipbuilding industry consolidates, and maintain its Buy rating with a lower TP of $1.65.