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3921-3940 of 4713
does it really have potential to hit 1.8?
Yangzijiang is equipped with rocket engine !
DBS Vickers raises Yangzijiang (BS6.SG) target price to
S$1.75 from S$1.36, based on 14X FY10 P/E vs 11X previously to align with industry re-rating; "we remain confident on Yangzijiang's earnings delivery and expect new order wins for shipbuilding to be a near-term catalyst." Notes China-based shipbuilder has been reporting constant flow of orders for two straight quarters. Says foray into rig-building business via purchase of stake in PPL Shipyard won't yield significant results near term as orders for jack-up rigs in general still weak, but notes Yangzijiang paying for opportunity to enter offshore segment by leveraging on PPL's technical know-how. Keeps Buy call.
Start buying from $1.42 taken profit, recently get in again, still bullish eventhought STI keep going down! 
$1.80
| Yangzijiang |
Symbol:
BS6 |
Currency:
Singapore Dollar |
| Last: |
1.49 |
 + 0.06 |
Vol (K): 117916.0 |
| Trading |
| Updated Time |
19-Apr 17:05 |
| Open |
1.37 |
High |
1.51 |
Low |
1.36 |
| Prev Close |
1.43 |
Buy |
- |
Sell |
- |
| Volume(K) |
117916.0 |
Buy Vol(K) |
- |
Sell Vol(K) |
- |
| 52 Wk High |
1.43 |
52 Wk Low |
0.43 |
52 Wk Avg Vol |
22433.103 |
| All Time High |
2.87 |
All Time Low |
0.27 |
|
|
| Comments |
Near 52 wk high |
*Reporting Currency in CNY
Important: ShareJunction obtains our finance data from a third party. Check financial year before use. EPS values are recorded up to two decimal points.
| Financials |
| Date Updated |
31-Mar-2010 |
Financial Year |
31-Dec-2008 |
Current Year Profit
(After Tax) $'000,000 |
1579.76 |
Previous Year Profit
(After Tax) $'000,000 |
869.509 |
| Net Asset Per Share |
1.18 |
Turnover $'000,000 |
304.3 |
Current Year EPS
(After Interest and Tax) |
0.43 |
Previous Year EPS
(After Interest and Tax) |
0.24 |
| PE Ratio (After Tax) |
2.7 |
Times Covered |
3.3 |
| Price (at update time) |
1.16 |
Dividend Yield |
0.11 |
*Technical Analysis Information is updated Daily
| Technicals |
| RSI |
79.02 |
Williams %R |
-3.33 |
| Comments (RSI) |
Overbought |
Comments (W%R) |
Overbought |
Intraday Chart
who cares whether STI down >1%!
YZJ don't give a hoot ..chiong 4%
YangZiJiang - Acquisition of minority stake in PPL Shipyard - BUY ($1.43) TP $1.80 by DMG
Proposed acquisition of PPL is a prelude to bigger things. YZJ and two
partners have proposed to acquire PPL Holdings from Baker Technology for
US$155m (S$216m). Under the structure of the deal and post-acquisition, YZJ
will own an effective stake of 7.5% in PPL Shipyard, which is one of the world’s
leading rig builder. In our view, the deal is positive: (1) Acquisition is fairly valued
at 3x P/B vs. P/B valuation for listed rig builders of more than 4x. (2) The deal is
modestly EPS dilutive due to share placement to a Middle Eastern investor, but
compensated by potential earnings growth when its offshore division is fully
developed. (3) The acquisition allows YZJ to tap into PPL’s expertise and helps
develop YZJ’s offshore capabilities. We believe this may lead to a yard setup in
China to focus on the offshore market. We maintain our earnings forecast but
raise our TP to S$1.80 based on higher P/E multiple of 15x on FY10 EPS.
Acquisition fully funded by share placement to Middle East investor. Key
details of the acquisition: (1) YZJ, a Middle East investor and Mr. Yu Kebing (a
non-executive director of YZJ) have offered to acquire PPL Holdings from Baker
Technology for US$155m. Baker Technology has up to 4 May 10 to accept the
offer. The crown jewel in PPL Holdings is the 15% stake in PPL Shipyard. The
remaining 85% in PPL Shipyard is owned by Sembcorp Marine. (2) Postacquisition,
YZJ, the Middle East investor and Mr. Yu will hold 50.1%, 49% and
4,9% stake in PPL Holdings respectively. (3) YZJ’s share of the acquisition at
US$77.6m will be fully funded by a 83.5m share placement to an unnamed
Middle East investor at S$1.295/share. The new placement shares will dilute
YZJ’s existing share base marginally by 2.3% and is subjected to acceptance of
the offer by Baker Technology. (4) PPL Shipyard has a net book value of
US$343m for FY09. The acquisition price values the shipyard at 3x P/B.
Valuation: target price raise from S$1.48 to S$1.80. Despite strong share
price run-up of 23% since our initiation, we think there is more upside to the
stock. We raise our TP from S$1.48 to S$1.80 based on higher P/E multiple of
15x on FY10 EPS compared to 12x previously. The higher P/E reflects the
potential earnings from YZJ’s new pillar of growth in the offshore market. Our
revised TP implies 4.1x FY10 P/B. Key catalysts for share re-rating are: (1)
recovery of new orders; (2) new income from business units under development.
Overbought overpriced...
placement at 1.295?!?!? wow !! that is abt 14cts discount to last traded price of 1.43 siah!! gee....wonder will it be a sell down for today??! couple with plunge in DJ last Fri ?!?! :P
One thing for sure that Middle East People now are all eyes on YZJ .......
Most possibly that recent run up are from the Middle East Fun Manager........
So seat back, fastern your safety belt and hold tide.....
Wave up all the way........
Congratulate for those have vested......Sure worth the money investing in this counter......
CHEERS !!!
One thing for sure, Yangzijiang had made an offer to Baker Tech that Baker Tech can not refuse.
Yangzijiang on one hand buy itself a short cut into Offshore Marine industry which now a robust in a energy hungry world. By entering quickly into Offshore Marine and jointly working with Sembmarine, Yangzijiang will gain valuable capability in rig building. This will definitely boost Yangzijiang value in the long run.
Its a win win deal, in my opinion.
Yangzijiang, at USD155million, is paying for PPL Shipyard at 3times book value. Its direct stake in PPL holdings is 50.1%, translating to about 7.515% direct stake in PPL Shipyard.
That should give Yangzijiang one board seat in PPL Shipyard while the other middle-eastern investor should get one seat too. There are i think 9 seats on the board of PPL Shipyard, seven of the other directors mainly representing SembCorp Marine since they control 85% of PPL Shipyard. The 2 other directors are directors of Baker Technology. Post-acquisition completion if successful, i think will see Yangzijiang and middle-eastern investor appointing their own director to replace the two from Baker Tech.
Post acquisition, would Yangzijiang seek to join forces with SembCorp Marine to set up a rig building facilities in China? If so, that would be the real deal that would make Yangzijiang stand out relative to Cosco. This purchase of PPL holdings could be the initial baby step to take. Just my opinion.
grandmaster89 ( Date: 18-Apr-2010 14:12) Posted:
Baker Tech shareholders are the real winners. Their 15% stake is only recorded to be worth S$5 million in its balance sheet and their total assets size is only S$130 million. Now they are selling their $5 million stake for US$155 million which is much larger than its asset size !!!
Mind you, PPL is part of its investment division. Their core business is still intact.
|
|
Not sure. But one thing is certain, from this deal, Yangzijiang share worth at least $1.29..
krypton_79 ( Date: 18-Apr-2010 13:40) Posted:
|
Does this news will push up the prices after it's being unhalt? |
|
Baker Tech shareholders are the real winners. Their 15% stake is only recorded to be worth S$5 million in its balance sheet and their total assets size is only S$130 million. Now they are selling their $5 million stake for US$155 million which is much larger than its asset size !!!
Mind you, PPL is part of its investment division. Their core business is still intact.
Trading Halt lifted. Not sure how it will trade tmr. Anyone care to comment?
Does this news will push up the prices after it's being unhalt?
Yangzijiang are now officially in OffShore Marine sector.
China’s Yangzijiang Shipbuilding (YAZG.SI) and a Middle Eastern investor will buy an an indirect stake in Singapore-based oil-rig maker PPL Shipyard in a $155 million deal.
Yangzijiang has offered to buy Baker Technology’s (BASE.SI) fully-owned vehicle PPL Holdings, which owns a 15% stake in the Singapore oil-rig maker, it said in a statement today.
Under the deal, Chinese shipbuilder will get a 50.1% stake in the vehicle, the Middle Eastern investor 45% and 4.9% will go to Yangzijiang’s non-executive director Yu Kebing.
Yangzijiang will partly fund the deal by placing 83.55 million of its shares to the unnamed Middle Eastern investor at $1.295 a share, raising about $77.65 million for the purchase.
PPL shipyard, which makes offshore oil rigs, is 85% owned by Sembcorp Marine (SCMN.SI).
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China’s Yangzijiang to buy stake in Singapore rig-maker
Saturday, 17 April 2010 © 2010 - The Edge Singapore
Last Updated on Saturday, 17 April 2010 21:12
I came across this article, the halt is may be related to this good
news, but still dun understand why they need to halt for 1 day:
http://www.asiasis.com/viewprint.php?bbs_id=news&doc_num=7283&prn=1
Yangzijiang secures six bulkersOn April 12th 2010, China’s Jiangsu Yangzijiang
Shipbuilding reached an agreement with compatriot Fujian Provincial
Communication Transportation Group to build six 45,000-dwt bulk
carriers.
The ships are all designed by Chinese institutes for ocean going.
As is introduced, the newbuilding cost of six ships totals CNY 1.1bn ($161m)
The ships will be delivered in late 2011, early 2012 and early 2013 respectively.
The laden draft of those ships is only 10.5m. So, it’s suitable for
Chinese domestic operation, especially the supply for the national
power plants located along inland lines.
Yangzijiang targets 50 ship deliveries this year, regardless of market recession.
As is reported earlier, the Singapore-listed builder are considering listing in Hongkong or Twaiwan as well.
Published : April 15, 2010
Great! Seem like the East wind has started blowing............. =)
