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Yangzijiang Shipbuilding’s share price has shown renewed strength, closing at S$5.17 on Friday (Sept 18), just shy of its 52-week high of S$5.26. A likely reason for the strength is shipping-industry reports pointing to nearly US$4 billion of potential new orders. It started on Sept 16, when maritime publication Splash247 reported that French container giant CMA CGM could order 12 massive 24,000-TEU LNG dual-fuel containerships from Yangzijiang, in a deal worth close to US$3 billion. Splash247, a specialist shipping publication, said Alphaliner (a specialist container-shipping data and intelligence service) had identified CMA CGM as the most likely customer and said “a letter of intent has been signed.” But it also stressed: “Neither CMA CGM nor the Singapore-listed Chinese shipbuilder has confirmed the deal.” Then came another interesting report. On Sept 17, shipping industry publication TradeWinds reported that not only CMA CGM but also South Korea’s HMM were lining up about US$3.9 billion of newbuildings at Yangzijiang. |
| Has the market started pricing it in? |
From S$4.66 on Sept 2, Yangzijiang closed at S$5.05 on Sept 16, then rose to S$5.14 and S$5.17 over the next two sessions.
Has the price rise captured the US$3 billion order?
Yangzijiang had a US$22.4 billion orderbook at end-June 2026 and had secured about US$1.96 billion of new orders through July, compared to its FY2026 target of US$4.5 billion.
If they become firm orders, the CMA CGM and HMM deals would equal roughly 18% of the June orderbook and push 2026 order wins to nearly US$6 billion.
The vessel type is also important.
The CMA CGM vessels are reportedly sophisticated LNG dual-fuel megamax containerships worth roughly US$245m–250m each for delivery in 2029-30, while HMM's are large, technologically sophisticated bulk carriers.
Yangzijiang’s shipbuilding gross margin reached an exceptional 37.1% in 1H2026, helped partly by higher-value LNG dual-fuel ships. Filling future capacity with high-value ships is clearly positive.
Confirmation would likely be positive for the share price, but some expectation may already be reflected at S$5.17. The more important issue is whether analysts conclude that the orders extend Yangzijiang’s high-margin earnings cycle and revised their target prices upward. Current broker target prices for YZJ:
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→ See also:YANGZIJIANG SHIPBUILDING: This Company Has Mega Mix of Margins, Orders (US$22 Billion), Dividends
