YangZiJiang: Merrill Lynch retain Buy on Yangzijiang Shipbuilding TP: S$2.12, noting that frp is expected to be one of the key beneficiaries of mega-containership orders revival from late 2Q12. Expect YZJ to derive 30% of its rev in FY12E from containership orders, and 73% in FY13E.
Add that shipbuilder faces good re-rating prospects, as investor sentiment is expected to rebound strongly, given the prevalent views against mega-containership orders in 2012. Evergreen makes its move for mega-containerships
Latest check with YZJ reflects a rebound in clients’ enquires for mega-containerships vs early 1Q12. YZJ has 26 options/LOIs for 10,000-TEU containerships with Seaspan (a ship chartering company), and Peter Doyle.