Yang Zi Jiang

Yang Zi Jiang: CLSA Upgrades to UnderPerform from Sell with $1.95 TP, citing potential capacity as concerns. Highlight that grp’s plans to triple yard capacity in next 5-7yrs carry significant risk of over-capacity, even after factoring in its coup of 22 10,000 TEU containership orders from Seaspan (to be finalized soon). Add that current bulk and container outlook, even post Japan quake, are not supportive of a surge in new orders. House remains cautious on grp given current headwinds.