Yangzijiang a beneficiary of e-commerce boom, shipping demand

Shipbuilder has secured record orders this year; meanwhile, its other businesses are growing and delivering improved profitability

Tay Peck Gek

Published Thu, Sep 2, 2021 · 05:50 AM

yangzijiang shipbuilding

Singapore

THE Singapore dollar shares of China-based Yangzijiang Shipbuilding Holdings are up 72.8 per cent this year, making the shipbuilder the best performing constituent of the Straits Times Index by a long way. The second-best performer is CapitaLand, up 24.3 per cent.

In spite of that gain, Yangzijiang is still valued at a relatively modest 10.3 times its historical earnings and 10.7 times its forecast earnings, according to Bloomberg data.

There appears to be significant wind behind Yangzijiang's sales, given the company's position in an industry that has recently sprung to life.

The company reported a fall in vessels delivered in H1 FY2021 vis-a-vis the corresponding period last year, which weighed on the group's revenue. Yangzijiang delivered 23 vessels in the half-year, versus 28…