- Stock Climbs Over 7% in Intraday Trading.
- New Orders Worth US$920 Million Announced.
- Deliveries Scheduled Between 2027 and 2029.
Shares of Yangzijiang Shipbuilding jumped by 6.5 per cent shortly after the market opened on Monday (Sep 1), following the news that the company had landed 22 new vessel orders, reports Business Times.
Market Performance
The stock rose by S$0.19 to reach S$3.10 at 9:29 am, compared to the previous close of S$2.91 on August 29. It later climbed to S$3.12, marking a 7.2 per cent increase just after the midday trading break. During the session, nearly 50 million shares changed hands.
Details of the New Orders
The Chinese shipbuilder announced after the market closed on August 29 that these new orders are valued at a whopping US$920 million. The vessels are set to be delivered between 2027 and 2029. The company also mentioned that these contracts are not expected to significantly impact earnings for 2025.
Year-to-Date Contract Value
With these latest deals, Yangzijiang Shipbuilding has now secured orders totalling nearly US$1.5 billion this year.
Analyst Commentary
Citi analyst Luis Hilado pointed out the importance of these contracts. He noted that the fact that the new orders come from various clients could signal a broader recovery in the shipbuilding market, which may have helped counterbalance the decline in average vessel sale prices.
He also suggested that investor confidence in Yangzijiang’s revenue outlook through 2027 has likely been restored, and he speculated that earlier concerns about potential order cancellations following the so-called “Liberation Day” tariffs had previously driven the share price down.
Tariff Concerns and Market Outlook
Earlier, the US had announced plans to impose port fees of up to US$1.5 million on vessels built in China in April, although they later partially rolled back those plans. Citi has set a target price of S$2.98 for Yangzijiang Shipbuilding, anticipating a total return of 7.4 per cent. Shares closed at S$3.10 on Monday, up S$0.19 or 6.5 per cent.
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Source: Business Times
