YZJ Shipbldg Jumps 5%. CGS International Says Its Valuation Seems Undemanding, Raising PT to S$4.51 from S$3.90
Dow Jones
Nov 19
Yangzijiang Shipbuilding's stock valuation appears undemanding to CGS International's Lim Siew Khee and Meghana Kande. The stock is trading at a 50% discount to peers, the analysts write in a note.
Shares gain 4.9% to S$3.42 on Wednesday.
Order wins are likely to be key catalysts for its shares, they add. The Singapore-listed shipbuilder has locked in most of its steel demand for next year at the current low costs, which could result in margin expansion, they say.
However, they note the Singapore-listed shipbuilder is facing stiffer competition from some Chinese yards. The analysts cut their order estimates for 2025 to $3 billion, citing the slower year-to-date order momentum. CGS International raises its target price to S$4.51 from S$3.90 and reiterates its add rating.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.