Yangzijiang’s new-order wins may not be enough to increase share price
This is due to the firm’s full yard capacity.
Despite timely delivery and new-order wins, Yangzijiang Shipbuilding’s share price will remain unchanged, according to analyst UOBKayHian.
It said Yangzijiang’s new order wins will not necessarily lead to earnings until at least 2024.
“After its strong share price performance, the company’s valuations now appear stretched – and with its yard capacity full until at least 2H25, further new-order wins may not drive Yangzijiang Shipbuilding’s share price higher,” read the brokerage report.
UOBKayHian then downgraded the firm’s rating to HOLD, with a fair value of $1.55.