Yangzijiang signs US$700m shipbuilding contract with Seaspan

The massive deal is for the construction of seven 10,000TEU container ships for Seaspan Corporation.

This latest order brings YZJ's order book to US$6.1b, says DMG.

Here's more:

Yangzijiang (YZJ) announced that they have entered into a shipbuilding contract with Seaspan to build seven 10,000TEU container ship for US$0.7b (RMB4.5b) with options for 18 identical units. The seven units will be delivered in 2014 and 2015. The latest order win lifted its YTD order win to around US$1.2b (RMB7.85b) and gross order book to US$6.1b (RMB40b), implying 2.5x FY11F revenue.

Moving up the value chain to build bigger vessels. The order for the newly developed container vessel type is a major milestone for YZJ and is their biggest ship product to-date that will put them in direct rivalry with the Korean shipyards in building huge containerships. We believe the gross profit margin for the new batch of containership is much lower than its existing margins (>20%) and should hover around 8-9%. The order is not expected to have significant impact on our FY11-12F EPS estimates.

Valuation: Maintain BUY with a lower TP of S$1.98 based on 12x FY11 P/E. We lower our TP for YZJ given order outlook for the bulk carrier market has turned weaker due to falling charter rates and believe orders for new bulk carriers will be few and far in between. Still, we remain positive on the stock: (1) high order book will keep the yard busy for the next couple of years; (2) we expect margins for FY11 and FY12 to stay high due to execution of pre-crisis order book.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia

Top News

'Christian Horner: Unfiltered' Comes to Singapore During F1 Week

The former Oracle Red Bull Racing Team Principal headlines a one-night-only live conversation on leadership, team culture and life at the pinnacle of Formula 1

Leisure & Entertainment

55 minutes ago

SC Capital acquires townhouse compound in Chung Hom Kok, Hong Kong