Brokers' take

Yangzijiang Shipbuilding Holdings| Buy

May 25 close: S$1.485

Target price: S$1.62

DBS Group Research, May 25

YANGZIJIANG has evolved to be the largest private shipbuilder in China and is among the handful Chinese yards that have scaled up to build mega containerships, VLCCs (very large crude carriers) and recently LNG (liquefied natural gas) vessels. It is the best proxy to the recovery in shipping and shipbuilding sectors.

Potential merger & acquisition of RongSheng's yard could be a strategic move, though a decision has yet to be made. We believe major corporate actions that require fund raising could revive interest of dual-listing in Hong Kong/China stock exchanges, riding on the Hong Kong-China through train. Organically, earnings are expected to be stable these two years, supported by healthy order book of US$4.6…