Weekly | Why YZJ Shipbldg Lead the Market this Week?
As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,426.47 points, down 0.61% points last week.
During the last 5 trading days, $YZJ Shipbldg SGD(BS6.SI)$, $Shangri-La HKD(S07.SI)$, $Gulf TH SDR(TGED.SI)$, $Seatrium Ltd(5E2.SI)$ and $Sheng Siong(OV8.SI)$ are the top 5 weekly gainers, up 12.55%, 4.49%, 2.98%, 2.74% and 2.04% respectively.
$Sri Trang Agro(NC2.SI)$, $Mapletree Log Tr(M44U.SI)$, $OUEREIT(TS0U.SI)$, $SIA Engineering(S59.SI)$ and $F & N(F99.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.
Below are key analyses of the TOP 5 gainers:
1. $YZJ Shipbldg SGD(BS6.SI)$
Yangzijiang Shipbuilding has entered the very large ammonia carrier market with a $440 million deal for four 88,000-cbm vessels from Nissen Kaiun. These ships will be on seven-year charters to energy trader BGN.
Yangzijiang's EPS has grown 17% annually over three years, with EBIT margins rising from 13% to 20% in the past year, according to SimplyWall.st. Revenues are also increasing, indicating potential growth.
Citi Research analyst Luis Hilado noted that Yangzijiang's order momentum is expected to continue into FY 2028, suggesting strong future revenue.
2. $Shangri-La HKD(S07.SI)$
As an owner-developer-operator, Shangri-La Asia Limited boasts a diverse portfolio of assets, including hotels, offices, retail spaces, residential properties for sale, and mixed-use developments. Last week, the company’s stock rebounded nearly 4% with the arrival of the peak summer travel season.
In celebration of its 50th anniversary, Shangri-La Group recently released a limited-edition book titled "From the Heart: Celebrating 50 Years in Asia," honoring the people and culture that have contributed to Asia's growth and prosperity.
Additionally, Shangri-La established a CNY 20 billion MTN Programme and issued a CNY 1 billion three-year bond earlier last month, marking the second issuance under this programme. The proceeds will be used for general corporate purposes.
3. $Gulf TH SDR(TGED.SI)$
Following a notable gain the previous week, Gulf TH SDR saw another rise of nearly 3% last week. Linklaters advised Gulf Energy Development Public Company Limited (GULF) on its strategic merger with Intouch Holdings Public Company Limited (INTUCH). This merger aims to streamline the group’s shareholding structure and unlock new growth opportunities in the energy, infrastructure, and digital sectors.
GULF is a leading player in Thailand's energy sector, with investments in conventional and renewable power generation, natural gas supply, infrastructure development, and digital businesses. INTUCH is the largest shareholder of Advanced Info Service Public Company Limited (ADVANC), Thailand’s largest mobile operator, and Thaicom Public Company Limited (THCOM), the country’s satellite operator.
The merger, which involves five listed entities on the Stock Exchange of Thailand and the Singapore Exchange – GULF, INTUCH, ADVANC, THCOM, and Singtel – is subject to shareholder approval in October 2024 and represents one of the largest transactions on the Stock Exchange of Thailand.
4. $Seatrium Ltd(5E2.SI)$
According to The Straits Times, offshore and marine specialist Seatrium secured S$180 million in contracts to repair and upgrade various vessels, as announced on July 23. All but one project will be completed by the end of 2024.
These contracts cover major repairs on offshore vessels, naval vessels, ferries, liquefied natural gas (LNG) carriers, tankers, and damage repair.
Earlier, Seatrium awarded the American Bureau of Shipping (ABS) a classification contract for Petrobras' new floating production storage and offloading (FPSO) platforms P-84 and P-85, with final delivery expected by 2029.
These are the first FPSOs awarded under ABS and Seatrium's Technology Collaboration Agreement (TCA), which aims to enhance decarbonization, digitalization, and innovation in the offshore industry.
5. $Sheng Siong(OV8.SI)$
Sheng Siong Group Ltd., the parent company of Sheng Siong Supermarket Pte Ltd, operates the third-largest supermarket chain in Singapore.
In early July, a research analyst noted that Singapore's retail sector is expected to perform well for the remainder of the year, thanks to an improving external environment and a strong lineup of major events. Recent data shows that Singapore's consumer prices rose at a slower pace in June, primarily due to significantly lower transportation costs and reduced core inflation.
Last week, analysts polled by CapitalIQ gave Sheng Siong Group an average rating of outperform, with price targets ranging from SG$1.62 to SG$1.96.
What are the upcoming events for the Singapore stock market?
[Cool] Please refer to SG earnings calendar below：
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