$YANGZIJIANG SHIPBLDG HLDGS LTD(BS6.SI)$ "In addition, we could also expect further yard efficiency and productivity gain. These could prompt the street to upgrade earnings for next 2-years especially if margins surprise on the upside in the upcoming 1H23 results," adds DBS, who now has a "buy" call and $1.70 target price, which is based on 1.7x FY2023 price to book, and 10.8x price to earnings. On the other hand, there's "cost risk" from unfavourable forex, and steel, potentially impacting margins. In any case, citing market prices compiled by Clarksons, the contract prices fetched by Yangzijiang seems "quite in line" with the peers. "We believe reasonable buffers have been built in to mitigate cost inflationary risks," says DBS. CGS-CIMBβ