Yangzijiang: may be in focus after it enters an agreement to acquire 60% equity interest in CS Marine Technology for Rmb 5m (~$934k). CSMT's wholly-owned subsidiary in China, Barber-CS Marine Technology specialises in marine consulting, designing and engineering for ship building and offshore and YZJ says the deal will enable it to tap on the leading ship design expertise to consolidate and strengthen its current in-house design capabilities.It says this will provide it with an edge over other shipbuilders by offering both existing and prospective customers with high value adding turnkey ship-design services.
YZJ's shares have taken a battering this year (-24%) on worries over its non-core financial investments, its exposure to European customers and amid macro worries. While this deal is small and won't have any significant impact on EPS or NTA for the current FY, it may help shift some of the focus back to YZJ's execution, which analysts generally agree is best in class.
Shares closed +1.7% at $1.455 Friday.
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