[SINGAPORE] Shares of Yangzijiang Shipbuilding soared 6.5 per cent shortly after the market open on Monday (Sep 1), on the back of its announcement that it had secured 22 new orders for its vessels.
The counter jumped S$0.19 to S$3.10 as at 9.29 am, having closed at S$2.91 on Aug 29. It climbed to S$3.12 to be 7.2 per cent up shortly after the midday trading break, with nearly 50 million shares having changed hands.
The Chinese shipbuilder announced the new orders worth US$920 million after the market close on Aug 29.
The new vessels are due for delivery between 2027 and 2029, and will not “have any significant impact on the earnings” for 2025, it said.
The new orders mean that Yangzijiang Shipbuilding has secured orders with an aggregate value of nearly US$1.5 billion in the year to date.
Citi analyst Luis Hilado said that the new orders being from several different clients could indicate a widespread recovery in the shipbuilding market. This has likely offset the lower average vessel sale prices.
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He added that investor confidence in Yangzijiang’s revenue outlook until 2027 has likely been restored, and posited that previous fears of order cancellations after the so-called “Liberation Day” tariffs had driven the share price down.
The US had also said it planned to hit Chinese-built vessels with port fees of up to US$1.5 million in April before partially backing down.
Citi’s target price for the shipbuilder is now at S$2.98, with an expected total return of 7.4 per cent.
Shares in the shipbuilder closed at S$3.10 at the end of Monday’s trading day, S$0.190 or 6.5 per cent up.
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