Yangzijiang Shipbuilding (YZJ) reported a 5% YoY fall in its 4Q13 revenue to RMB3.38b and a 8% decrease in PATMI to RMB746.3m, such that FY13 revenue and PATMI declined by 3% and 14% to RMB14.3b and RMB3.10b, respectively. This was within our expectations, as PATMI came in 2% above our FY13 forecast. A first and final DPS of 5 S cents was declared, similar to FY12, and translates into a yield of 4.4%. Looking ahead, YZJ has begun to grow its fleet of vessels owned by the Shipping Logistics and Chartering segment as it sees an improving outlook for the commercial shipping market. We will provide more details after an analyst briefing scheduled later. For now, we place our Hold rating and S$1.22 fair value estimate under review.

Source: OCBC Research - 27 Feb 2014