• Yangzijiang Shipbuilding is one of the interesting large-cap stocks on the SGX. It has a strong order book, healthy profit margins and good visibility over the next few years. • As of May 2026, its outstanding orderbook was about US$22.3 billion stretching into 2030. Its 2025 net profit jumped 30.2% to RMB8.64 billion. Its 20 Singapore-cent dividend, equal to a 50% payout ratio, also gave investors a decent income angle. • The big question now is whether Yangzijiang can keep winning big orders, maintain its margins and smoothly ramp up its new Hongyuan yard. • There are still risks, including weaker shipbuilding orders, geopolitical tensions and execution issues.
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Excerpts from CGS International report
Analysts: Lim Siew Khee & Meghana Kande
■ Xinfu yard’s large vessel deliveries likely drove 1H26F PATMI to c.Rmb5bn (+19% yoy), with 35% shipbuilding GM supported by higher ASPs.
■ We raise FY26F-28F net profit estimates by 3-8%, mainly on stronger revenue recognition as well as gradual capacity addition at Hongyuan yard. |
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| Strong 1H26F on large vessel deliveries from Xinfu yard |
We expect Yangzijiang Shipbuilding (YZJSB) to report 1H26F PATMI of c.Rmb5bn (+19% yoy), driven by recognition of post-2023 orders secured when newbuild prices rose 10- 15%.
Clarksons data show YZJSB’s Xinfu yard delivered the first units of its large-vessel series orders — one 24,000 TEU LNG dual-fuel containership and one 100K cbm very large ethane carrier (VLEC) in May 2026.
The remaining nine 24K TEU containerships and four VLECs will be gradually delivered over 2026-27F.
We think 1H26F shipbuilding gross margin held steady yoy and hoh at c.35% as delivery of these high-value vessels likely offset the impact of Rmb appreciation vs. US$ (+5% yoy).
Additionally, we believe YZJSB’s own fleet of 31 vessels (mostly bulk carriers) could see improved shipping margins from higher bulk freight rates propelled by the Middle East conflict.
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Metric |
FY24A |
FY25A |
FY26F |
FY27F |
FY28F |
|
Revenue (Rmbm) |
26,542 |
28,505 |
35,708 |
38,962 |
39,802 |
|
Net Profit (Rmbm) |
6,634 |
8,637 |
10,129 |
10,140 |
10,013 |
|
P/E (x) |
11.65 |
8.93 |
7.60 |
7.59 |
7.69 |
|
DPS (Rmb) |
0.62 |
1.10 |
1.29 |
1.29 |
1.27 |
|
Dividend Yield |
3.19% |
5.62% |
6.57% |
6.58% |
6.50% |
Sources: CGSI Research Estimates, Company Reports
We expect 2023 contracts to be largely delivered in 2026F, and the bulk of 2024 orders in 2027F-28F (Fig 7).  Lim Siew Khee, analystWe believe this, along with gradual capacity addition at Hongyuan yard (to be completed by 2H26F), supports strong revenue growth in FY26F/27F (+25%/+9% yoy) as recognition is delivery-weighted. We lift FY26F-28F net profits by 3-8% on stronger revenue recognition.
This raises our TP to S$5.10, still based on 11x FY27F P/E, in line with peers. We maintain Add for its attractive risk-reward at 8x fwd P/E and 6.6% FY27F dividend yield. Catalysts: stronger order wins, faster-than-expected deliveries. Risks: Rmb appreciating vs. US$, higher steel prices impacting margins. |
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