Yangzijiang Shipbuilding continues earnings rally; shares gain 11%

[SINGAPORE] Shares of Yangzijiang Shipbuilding continued their rally on Tuesday (Aug 11), advancing by 9.3 per cent in the morning.

The counter rose to S$4.59, adding S$0.39 by 10.17 am. It ended the day 11 per cent or S$0.46 higher at S$4.66, after 77 million shares valued at S$350.6 million were transacted.

The move picked up from a 6.6 per cent rise on Friday, which followed the shipbuilder on Thursday reporting a 28.4 per cent increase in net profit to 5.4 billion yuan (US$800 million) for its first half.

The rise in earnings, from 4.2 billion yuan in H1 FY2025, largely came on the back of higher shipbuilding revenue from the progressive construction of vessels secured at higher contract prices.

A favourable shift in product mix, towards ultra-large liquefied natural gas dual-fuel container ships and very large ethane carriers, was also a key factor, as was the start of shipbuilding activities at the group’s new Hongyuan yard.

Earnings per share came in at 136.4 fen for the half year, up from 106.02 fen the previous year. Revenue rose 36.2 per cent to 17.5 billion yuan, from 12.9 billion yuan a year earlier.

In response, Citi on Friday raised its target price for Yangzijiang Shipbuilding 6 per cent to S$5.16, from S$4.88, and maintained a “buy” call.  

It also raised its full-year 2026 revenue forecast by 16 per cent. This came on the back of management indications that a higher-priced batch of orders will be worked on in the second half of the year, and 53 per cent of vessel target deliveries for 2026 will be during this period.

Still, Citi analyst Luis Hilado warned that the “sustainability of share-price positive momentum will be tied to the next batch of significant order wins coming sooner than later”.

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CGS International on Friday similarly raised its target price – from S$5.10 to S$5.75 – as it reiterated an “add” rating.

The research house raised its 2026 to 2028 core net profit estimates by 3 to 8 per cent on higher gross margin assumptions, following the “strong” H1 trajectory and visibility backed by pending deliveries of “high-value orders” from 2023 and 2024.