Yangzijiang outstrips shipbuilding peers with steady share price growth

While other O&M players languish.

Yangzijiang has outstripped its shipbuilding peers with a 10% share price growth since November last year, while most other offshore and marine stocks saw significant price declines on back of the oil rout.

According to OCBC, Yangzijiang is supported by its small exposure to the oil and gas segment, good track record and hefty cash pile.

“There are several possible reasons for the outperformance, with the most important one likely being YZJ’s small exposure to the offshore oil and gas sector – the group is currently building its first jack-up rig, though it will further develop its LNG carrier capabilities. YZJ had an order book comprising 118 vessels worth a total of US$4.75b as at 27 Feb 2015. we believe that YZJ’s good execution track record and significant cash pile (including the held-to-maturity assets) instill confidence in customers to place orders with them,” stated OCBC. 

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