- Yangzijiang Shipbuilding’s shares have recovered after U.S. port fee measures, supported by strong fundamentals.
- HSBC raised its target price, citing margin growth, stable steel costs, and efficient operations.
- Recent vessel orders worth USD 1.46 billion highlight steady contracting momentum in 2025.
- Despite policy challenges, Yangzijiang trades at a discount to Korean peers while maintaining superior margins.
Shares of Yangzijiang Shipbuilding, China’s largest private shipbuilder, have rebounded strongly after earlier declines linked to U.S. trade policy measures on Chinese-built vessels. Analysts point to steady margins and renewed contract activity as key factors behind the recovery, according to a recent report by gCaptain.
Yangzijiang Positioned for Growth Despite U.S. Trade Policy Shifts
In April 2025, the U.S. Trade Representative introduced a tiered fee structure on Chinese vessels calling at American ports. The policy, designed to support domestic shipbuilding while challenging China’s maritime presence, applies fees based on net tonnage, with gradual increases set through 2028.
Despite these trade challenges, HSBC has reiterated a “Buy” rating for Yangzijiang Shipbuilding, lifting its target price from SGD 3.30 to SGD 3.80. The bank cites margin expansion, resilient demand, and a potentially softer-than-expected contracting cycle as the basis for its optimism. Analysts expect margins to improve steadily from 2025, supported by higher-value orders, stable steel prices amid weak domestic demand, and greater operational efficiency.
Yangzijiang’s contracting activity has also bolstered confidence. The company recently secured 22 vessel orders worth USD 920 million, bringing its year-to-date tally to 36 vessels valued at USD 1.46 billion. HSBC’s analysis highlights that contracting levels across the industry have remained more stable in 2025 compared with earlier downturns, with demand for smaller containerships in the feeder segment proving particularly resilient. Additional opportunities are expected in the dry bulk and tanker markets as aging fleets drive replacement demand.
From a valuation perspective, Yangzijiang continues to trade at a notable discount to its Korean peers, despite maintaining what HSBC describes as a stronger margin profile. This favorable positioning underscores the company’s potential to benefit from both market stability and sector-specific growth trends.
The report also places Yangzijiang’s performance within the wider maritime context, where geopolitical developments, regulatory adjustments, and shifting trade flows continue to shape the industry. Notably, the U.S. policy includes a remission pathway for operators that commit to acquiring U.S.-built vessels, reflecting a more measured approach than earlier proposals.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: gCaptain
