Yangzijiang

[winston]

RESEARCH ALERT-Deutsche Bank starts Yangzijiang at sell

SINGAPORE, Oct 16 (Reuters) - Deutsche Bank initiated coverage of Chinese shipbuilder Yangzijiang Shipbuilding with a "sell" rating on Thursday, citing an industry wide downcycle and a possible oversupply of ships in 2010 and 2011.

"New orders for Yangzijiang have fallen sharply and we expect this weakness to persist," analyst Kevin Chong said in a note and set a 12-month price target of S$0.21. The stock closed at S$0.31 in Singapore on Wednesday.

[learn2win]

Yangzijiang zhun zhun hit the 40 MA and retraces for the second time. After strong volume surge, it is pulling back with subdued volume. Keep this in your radar, should be able to make some kopi money.

[millionairemind]

Published November 12, 2008

Yangzijiang more than doubles Q3 profit to 475m yuan
By VINCENT WEE

(SINGAPORE) Yangzijiang Shipbuilding (Holdings) has more than doubled its net profit to 475.3 million yuan (S$103.9 million), from 224.7 million yuan previously, for the quarter ended Sept 30, 2008.

Similarly, sales more than doubled to 2.02 billion yuan, and the company declared an interim dividend of one cent per share.

On a nine-month basis, turnover went up from 2.3 billion yuan to 5.5 billion yuan while earnings rose from 554.1 million yuan to 1.18 billion yuan.

Third-quarter gross profit rose from 235 million yuan to 466 million yuan and gross profit margin rose to 23 per cent from Q2's 17 per cent as Yangzijiang built more high-margin big vessels.

Almost a third (695.6 million yuan) of Q3 sales came from the bigger 4,250 20-foot equivalent unit (TEU) containerships compared with none a year earlier.

Cost of sales rose to 1.6 billion yuan from 648.7 million yuan previously, in line with the higher volume of shipbuilding activities. However, administrative expenses fell by a third from 62.4 million yuan to 41.9 million yuan, as the group contained its overheads.

Cash and cash equivalents dropped to 2.7 billion yuan, from 3.5 billion yuan in the year-ago period. This was due to some 465 million yuan spent on acquiring Jiangsu New Yangzi Shipbuilding Co, an outflow of about 2.8 billion yuan for investing in treasury products and 289 million yuan spent on the repurchase of shares from the open market.

Yangzijiang won contracts to build six vessels worth some US$81 million in the quarter, thus taking its order book to US$7.3 billion as at Sept 30. The builder said that there have been no order cancellations to date.

Of the 27 scheduled deliveries this year, 18 have been made in the first nine months of the year and a further three in October. The group expects to meet the delivery deadlines for the remaining vessels.

Its shares closed two cents higher at 45.5 cents yesterday.

[learn2win]

Well supported by the 40MA. Time to relook.

[blid2def]

Updated kumo chart. Making +ve progress this week, but still needs more momentum...

viewtopic.php?f=16&p=36349#p36348

[iam802]

ah, I just check Yangzijiang.

Currently, trading CD.

Let's wait a while longer and see what happens when it XD.

[blid2def]

Ah good point, didn't check that. Dividend is one cent, which would still keep it in the cloud then, assuming everything stays the way it is.

[winston]

BROKER CALL Singapore-listed Yangzijiang 'buy' on 2009 recovery prospects - UBS

BEIJING (XFN-ASIA) - UBS maintained a "buy" recommendation on Yangzijiang Shipbuilding, saying that falling steel costs and a recovery in demand should lead the shipbuilding sector out of its trough in the second half of this year. In current market conditions, weaker and less efficient shipyards are also likely to be squeezed out of the market, UBS said. A 47 pct fall in medium plate prices will begin to show in Yangzijiang's financial results in the first half of 2009, it said.

The global financial crisis has had a severe impact on global trading volumes, leading to postponements and cancellations of ship deliveries, but Yangzijiang already offering rebates to certain clients and setting aside provisional losses in the event that its clients default, it noted. UBS has a target price of 1.30 sgd for the Singapore-listed Chinese firm The shares last traded at 0.49 sgd.

[winston]

YANGZIJIANG SHIPBUILDING HOLDINGS LTD - Chinese shipbuilder Yanzijiang said its fourth quarter profits gained 25 percent due to higher revenues and contribution from its subsidiary Jiangsu New Yangzi Shipbuilding

[winston]

DJ MARKET TALK: HSBC Raises Yangzijiang Target Price To S$0.44

0305 GMT [Dow Jones] STOCK CALL: HSBC raises Yangzijiang (BS6.SG) target price to S$0.44 from S$0.35, maintains Neutral rating. Says FY08 earnings better than expected due to non-operating gains but excluding these, would have missed expectations. Cuts FY09, FY10 earnings estimates by 26.2%, 40.7% respectively, driven by expected deferral of deliveries, order cancellations.

Estimates nearly 40% of scheduled bulker deliveries in 2009, 2010 at risk; for container ships, estimates 45% of 2009 deliveries, 25% of 2010 deliveries at risk. But raises target price as lifts assumed price/book multiple to 1.2X vs 0.8X previously to reflect company's new shipyard capacity, which drove good increase in sales in 2008. Says risk/reward looks fairly balanced at present with upside risk of strong sales growth, lower material costs offset by negative risk of order deferments, cancellations. Shares +3.7% at S$0.425.