Singapore Stock Market News

Yangzijiang - Culling The Competition

StockFanatic
Publish date: Wed, 06 May 2015, 10:04 AM
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Yangzijiang's 1Q15 PATMI of CNY707m (-12% YoY, +11% QoQ) met 20% of our earnings estimate as investment revenue was seasonally low. Maintain BUY, with a higher SGD1.92 SOP-based TP (32% upside, from SGD1.68). Margins could remain firm as the company continues to focus on larger containerships. China's shipyard industry may further consolidate, which would cut the number of desperate competitors and potentially provide Yangzijiang with targets for acquisition.
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