YangZijiang: Announced that it had entered six shipbuilding contracts in Mar11 with contract value of US$214.2m. Contracts comprise two 82,000 and two 10,000 DWT bulk carriers and two 4,800 TEU container ships. Vessels scheduled for delivery from 2012 to 2013. In dry bulk segment, grp sees end users in China investing to build up vessel fleet and lower reliance on charterers…..
Deutsche note that current low BDI level, if sustained, could prompt demolitions to accelerate in coming years. Expect 30-yr high dry bulk demolitions in 2011 and 2012. Apart from high demolition tonnage, expect consolidation within the sector to further reduce supply and benefit large shipyards. Note that small shipyards are under threat of being taken over or going bankrupt as they face order cancellations, high gearing, and poor cash flows…..
YTD, YZJ has secured 14 shipbuilding contracts totaling US$512.3m. House FY11-13E new order forecasts are US$2.5b, US$3b and US$3.5b respectively. Add that grp had signed a LOI with Seaspan Corp to build 22 units of 10,000 TEU containerships worth over US$2b. If LOIs are confirmed, YZJ's new orders YTD could total around US$2.5b. CIMB and Deutsche has Buy Call on grp with TP of $2.69 and $2.31 respectively.
No comments:
Post a Comment