Singapore Stock Market News

Yangzijiang Shipbuilding - Winter months ahead

StockFanatic
Publish date: Wed, 09 Dec 2015, 01:08 PM
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Picture Credits : scmp.com
■ C.50% of YZJ's US$4.8bn order book is dominated by bulk carriers which face heightened cancellation and deferral risks amidst recession in the dry bulk sector.

We cut our order assumptions for FY16-17 from US$2bn p.a. to US$1.5bn.

■ Earnings will continue to deteriorate in 2016-17 on lower margin jobs, deferral of deliveries, weak order momentum and investment in lower-return investments.
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