Brokers' take

Yangzijiang Shipbuilding (YZJ) | Add (maintained) Target price: S$1.29 Aug 8 close: S$0.99 CGS-CIMB, Aug 8

Shipbuilding-related revenue grew 63 per cent quarter-on-quarter and 120 per cent year-on-year to 7.6 billion yuan (S$1.52 billion), thanks to the delivery of 20 vessels and accelerated progressive construction of larger containerships.

The delivery of large vessels secured at better pricing and margin and stronger topline helped to boost shipbuilding gross margin to 21 per cent, bettering our 20 per cent expectation.