Yangzijiang

Yangzijiang: Relatively better than Singapore peers- CIMB
- 1Q16 net profit of Rmb448m (-37% yoy) was slightly below expectations.
- Cash collection from the final payment for 15 vessels delivered in 1Q16, helped toswing YZJ back to a net cash position.
- YZJ has found new buyers for four of the eight bulk carriers cancelled during thequarter. The vessels will be delivered in 2016, as scheduled.
- Compared to the Singapore yards, YZJ is in a slightly better position with its netcash, order wins, steady shipbuilding margin, and absence of Brazilian overhang.
- Maintain Add and TP of $1.10.