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Cruising with the ship ..Yangzijiang

 

Yangzijiang bags $536m worth of shipbuilding contracts from Sept 1 to Dec 31

Tags: Yangzijiang Shipbldg Hldgs | Yangzijiang Shipbuilding

WRITTEN BY THE EDGE

WEDNESDAY, 12 JANUARY 2011 18:02

Yangzijiang Shipbuilding (Holdings) says the group has entered into 15 shipbuilding contracts between Sept 1 and Dec 31 2010 with a total contract value of US$415.30 million ($536.4 million). The new contracts secured comprise three 47,500 dwt bulk carriers, four 49,500 dwt bulk carriers, two 7,600 dwt bulk carriers and six 82,500 dwt bulk carriers. The vessels secured in the contracts will be scheduled accordingly for deliveries from year 2011 to 2013 and therefore will not have any significant impact on the earnings of the group for the financial year ended 31 December 2010.

 

Credit Suisse recommends BUY with Target Price at $2.40

 




● We raise our target price from S$2.20 to S$2.40 and maintain our 

OUTPERFORM rating, as we believe the market is 

underestimating Yangzijiang’s growth potential.  

● It announced the acquisition of a yard and two plots of land in 

2H10, which could increase its capacity by 60% by 2014. Recent 

press reports (International Shipping Net) suggest strong order 

momentum in 3Q10 has been maintained, with nearly US$500 mn 

of contracts won. We raise our 2011E order intake to US$2 bn 

(from US$1.5 bn) and 2012E to US$3 bn (from US$2 bn).  

● We believe Yangzijiang is the best positioned among Chinese 

yards to benefit from a recovery in containership orders. The 

recent MoU with CSBC Taiwan should enable it to scale the 

learning curve and construct 8,000 TEU containerships, and we 

believe a large containership order will be a rerating catalyst.

● We raise our target price to S$2.40, based on a 2011E P/E of 14x, 

in line with the sector average. Yangzijiang is one of the cheapest 

shipbuilding stocks globally, with a 2011E P/E of 11.4x, on a 16% 

net income CAGR over 2009-12E

Life Is Great 

 

Technical Comment from CIMB

 Similar to Genting Singapore, Yangzijiang also broke out of its triangle

resistance. Prices have swung above the key moving averages, suggesting

that the uptrend channel from its Feb10 low is still intact.

• Rising MACD and RSI support the near term bullish view. Once the S$2.05

high is taken out, prices should climb towards S$2.19 and S$2.31 next.

• The 30-day and 50-day SMAs are its immediate supports. We continue to stick

with the bulls as long as prices stay above these levels. Any weakness is a

chance to go long for this short term trade but keep a stop below S$1.90.

Life Is Great 

 

Going to break 1.97 resistance soon...

 

any impact if china increase min wages ?

epliew      ( Date: 30-Dec-2010 08:45) Posted: what is tp price to buy up ? and selling tp ? Hawkeye      ( Date: 30-Dec-2010 08:42) Posted: From Seatrade-asia http://www.seatrade-asia.com/

 

what is tp price to buy up ? and selling tp ?

Hawkeye      ( Date: 30-Dec-2010 08:42) Posted: From Seatrade-asia http://www.seatrade-asia.com/ novicealex      ( Date: 29-Dec-2010 22:19) Posted: Hawkeye just like to check where do you extract the news?  I can't even find the news from their company website or sgx website.

 

From Seatrade-asia

http://www.seatrade-asia.com/

novicealex      ( Date: 29-Dec-2010 22:19) Posted: Hawkeye just like to check where do you extract the news?  I can't even find the news from their company website or sgx website.

 

Me!!! and load more when it was@ 1.2 too....haha

krisluke      ( Date: 29-Dec-2010 22:57) Posted: btw, anyone has this below $1 when yzj play catchup with cosco in early 2010

 

btw, anyone has this below $1 when yzj play catchup with cosco in early 2010

 

what do u recommend ?

kiasiDBT      ( Date: 19-Dec-2010 21:56) Posted: U may be trick by BBs, u know how to read candlesticks, so do they, so u may fall into their trap by purposely creating a bearish candle, likewise it may oso be genuine, so best to wait for confirmation n dun jump the gun, long term holders have no fear as the FA is strong. lowchia      ( Date: 19-Dec-2010 17:08) Posted: On Friday, Yangzijiang retest the resistance at $1.95 and closed at $1.90 with HIGH volume of 20.57 million shares traded. A long upper shadow occurred.  This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought). RSI & MACD are bearish as MACD line began to converge together. Immediate Resistance of Yangzijiang: $1.95 Immediate Support of Yangzijiang: $1.86 Currently prices are supported by 20/50 days MA. On Friday, Yangzijiang failed another attempt to break the major resistance at $1.95 with high trading volume. The end result is the formation of a bearish candle stick with long upper shadow to affirm profit taking. We would advise READ MORE

 

maybe a follow-up news ?

Hawkeye      ( Date: 29-Dec-2010 21:14) Posted: Yangzijiang Shipbuilding secures orders for six bulk carriers Shanghai: Chinese shipping company Hua Yang International Marine has placed orders for six bulk carriers  with China-based Yangzijiang Shipbuilding. The contract, for which the pricing remains undisclosed, entails the construction of two panamax bulk carriers, two handymaxes and four 47,500dwt bulk carriers. Singapore-listed Yangzijiang Shipbuilding boasts an annual shipbuilding capacity of over 1m tons.  [29/12/10]

 

Hawkeye just like to check where do you extract the news?  I can't even find the news from their company website or sgx website.

 

Yangzijiang Shipbuilding secures orders for six bulk carriers

 

BBs have lots of shares and cash to play with low commission. They are able to do: left hand sell to right hand, or right hand buy from left hand to create the volume and  last done price. They can do this many times over for counters they target, especially those with "story" to tell to get market interested. Whatever report published, read in between the lines with eyes wide open. Good luck to all. 

 

U may be trick by BBs, u know how to read candlesticks, so do they, so u may fall into their trap by purposely creating a bearish candle, likewise it may oso be genuine, so best to wait for confirmation n dun jump the gun, long term holders have no fear as the FA is strong.

lowchia      ( Date: 19-Dec-2010 17:08) Posted: On Friday, Yangzijiang retest the resistance at $1.95 and closed at $1.90 with HIGH volume of 20.57 million shares traded. A long upper shadow occurred.  This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought). RSI & MACD are bearish as MACD line began to converge together. Immediate Resistance of Yangzijiang: $1.95 Immediate Support of Yangzijiang: $1.86 Currently prices are supported by 20/50 days MA. On Friday, Yangzijiang failed another attempt to break the major resistance at $1.95 with high trading volume. The end result is the formation of a bearish candle stick with long upper shadow to affirm profit taking. We would advise READ MORE

 

On Friday, Yangzijiang retest the resistance at $1.95 and closed at $1.90 with HIGH volume of 20.57 million shares traded.

A long upper shadow occurred.  This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

RSI & MACD are bearish as MACD line began to converge together.

Immediate Resistance of Yangzijiang: $1.95

Immediate Support of Yangzijiang: $1.86

Currently prices are supported by 20/50 days MA.

On Friday, Yangzijiang failed another attempt to break the major resistance at $1.95 with high trading volume.

The end result is the formation of a bearish candle stick with long upper shadow to affirm profit taking. We would advise READ MORE

 

thanks a lot for the info...

thulasiappan      ( Date: 17-Dec-2010 02:17) Posted: You can check some of the daily research reports at http://remisiers.org/ The reports are daily published under Research.  edwinteo      ( Date: 17-Dec-2010 00:38) Posted: Ooo..pai seh...from the edge..sianz lor..poems last time use to provide FOC..

 

seems like coming down !

enghou      ( Date: 17-Dec-2010 17:37) Posted: DMG recommends BUY with Target Price of $2.20New yard acquisition to boost long term growth Vertical integration to boost long term growth; upgrade to BUY. We raise Yangzijiang (YZJ) from NEUTRAL to BUY as we see better long term growth prospect following a slew of yard/land Acquisition deals at attractive pricing and potentially stronger new orders from the containership market. We believe recent proposal to acquire Jiangsu Zhongzhou Marine Equipment (JZME) for RMB420m (implied P/E of 7.7x and 1.2x net asset value) will enable the company to push for better productivity and the yard space at JZME (20% of existing capacity at Old Yard and New Yard) will provide extra production capacity to YZJ as its existing yards will be full over the next two years with current orders. Being a good proxy to the Chinese shipbuilding sector and seeing that its share price has retracted ~6% since our downgrade nearly two months ago, we raise YZJ to BUY with a higher TP of S$2.20 based on an unchanged target P/E of 15x on FY11 EPS. Details of the acquisition: Yesterday, YZJ announced that a wholly owned subsidiary has entered into an agreement to acquire 100% of JZME for RMB420m. According to the announcement, JZME is currently providing fabrication services to YZJ’s subsidiaries. JZME reported RMB49.37m net profit for the period between Jan-Nov 2010 and has a net book value of RMB290m as at 30 Nov 2010. JZME owns a 350,000 sqm yard space and 430m deepwater coast line. An independent valuer, Suzhou Wanlong Assets Appraisal, issued a valuation report dated 10 Nov 2010 and valued JZME’s net asset at RMB351m. Our thoughts: The acquisition is positive: (1) JZME is profitable and the pricing of the acquisition appears reasonable at 7.7x annualised 2010 earnings, 1.45x P/B and 1.2x NAV. (2) the deal is a good use of the huge cash pile on its balance sheet. Balance sheet has RMB4.7b unrestricted cash as at 3Q10. (3) The acquisition of JZME enables YZJ to gain better control of the fabrication process and this will shorten YZJ’s shipbuilding production cycle. Current order book of US$5.28b (RMB35b) will keep YZJ busy for the next two years.  Life Is Great

 

DMG recommends BUY with Target Price of $2.20New yard acquisition to boost long term growth

Vertical integration to boost long term growth; upgrade to BUY. We raise
Yangzijiang (YZJ) from NEUTRAL to BUY as we see better long term growth
prospect following a slew of yard/land Acquisition deals at attractive
pricing and potentially stronger new orders from the containership market.
We believe recent proposal to acquire Jiangsu Zhongzhou Marine Equipment
(JZME) for RMB420m (implied P/E of 7.7x and 1.2x net asset value) will
enable the company to push for better productivity and the yard space at
JZME (20% of existing capacity at Old Yard and New Yard) will provide extra
production capacity to YZJ as its existing yards will be full over the next
two years with current orders. Being a good proxy to the Chinese
shipbuilding sector and seeing that its share price has retracted ~6% since
our downgrade nearly two months ago, we raise YZJ to BUY with a higher TP
of S$2.20 based on an unchanged target P/E of 15x on FY11 EPS.

Details of the acquisition: Yesterday, YZJ announced that a wholly owned
subsidiary has entered into an agreement to acquire 100% of JZME for
RMB420m. According to the announcement, JZME is currently providing
fabrication services to YZJ’s subsidiaries. JZME reported RMB49.37m net
profit for the period between Jan-Nov 2010 and has a net book value of
RMB290m as at 30 Nov 2010. JZME owns a 350,000 sqm yard space and 430m
deepwater coast line. An independent valuer, Suzhou Wanlong Assets
Appraisal, issued a valuation report dated 10 Nov 2010 and valued JZME’s
net asset at RMB351m.

Our thoughts: The acquisition is positive: (1) JZME is profitable and the
pricing of the acquisition appears reasonable at 7.7x annualised 2010
earnings, 1.45x P/B and 1.2x NAV. (2) the deal is a good use of the huge
cash pile on its balance sheet. Balance sheet has RMB4.7b unrestricted cash
as at 3Q10. (3) The acquisition of JZME enables YZJ to gain better control
of the fabrication process and this will shorten YZJ’s shipbuilding
production cycle. Current order book of US$5.28b (RMB35b) will keep YZJ


busy for the next two years. 

Life Is Great