To The Moon

🌟🌟🌟$YZJ Shipbldg SGD(BS6.SI)$  share price has been on a tear this year as it is currently up 65% year todate and in 2023, Yangzijiang (YZJ) has risen 49%.

YZJ Shipbuilding was established in 1956 and is one of the largest non state owned Shipbuilding companies in China.  The Group is listed on the SGX since April 2007 and is one of the holdings in $STI ETF(ES3.SI)$ 

YZJ owns 4 shipyards in Jiangsu Province, China along the Yangtze River and produces a broad range of commercial vessels including large containerships, bulk carriers and LNG carriers.  YZJ has a well established customer network covering North America, Europe and Asia. 

On August 13, YZJ climbed to a 52 week high at SGD 2.75 as it posted a 77% rise in profit for the 6 months ended June 30 2024 to 3.1 billion yuan (SGD 572 million) as its revenue grew 15% to 13 billion yuan.   The stellar results was on the back of its core Shipbuilding business delivery of 37 vessels in 1H 24, well ahead of its full year target of 57 vessels. 

YZJ also reported stronger than expected shipbuilding margins of 25.9% compared to 21.9% in 2023 with management guiding that the current margin levels are sustainable. 

YZJ reported 1H 24 new order wins of USD 8.5 Billion with USD 5.2 billion in new orders just in 2Q24 alone.  This has surpassed YZJ 's USD 4.5 billion new order win guidance for 2024 as well as its prior peak of USD 7.4 billion in 2021.

As at June 30 2024, YJZ has a USD 20.2 billion order book for 224 vessels of which 70% are green vessels. 

On September 12 2024, YZJ announced that it has entered into a joint venture with Tsuneishi Holdings Inc to acquire a 34% stake in Tsuneishi Group (Zhoushan) Shipbuilding through a private share allotment.  This joint venture is expected to combine the strengths of both groups in research & development, Shipbuilding and supply chain capabilities in order to maximise synergies and achieve complementary benefits. 

Analysts are bullish on YZJ with a Buy rating, average Target price of SGD 3.04, an upside potential of 19% according to Tipranks. 

DBS analyst Ho Pei Hwa said that YZJ's record high order backlog will boost its earnings visibility well into 2026 and is bullish on YZJ. 

UOB analyst Adrian Koh is also bullish on YJZ with a Buy rating, Target price of USD 3.40 due to its higher Shipbuilding margin assumptions of 25% for 2024 and 22% for 2025 to 2026 compared to his previous prior assumptions of 18% to 19%.  He also said that YZJ share price remains inexpensive relative to its regional peers.  YZJ is trading at 2025 P/B of 1.7 and generated an ROE of 27% in 1 H 24.  In contrast its Korean peers trade at 1.1 - 2.1 P/B with 8 - 14% ROE. 

I have invested in YJZ since 2021 and have seen it grow slow and steadily.  YZJ has also rewarded me with nice steady dividends, the current dividend yield is 2.5%.  In April 2022, YZJ has also rewarded me with dividend in specie of 1 for 1 share of its spin off $YZJ Fin Hldg(YF8.SI)$  

With its order books overflowing with orderswell into 2026 and beyond, its full steam ahead for Yangzijiang.   My strategy of Buy and Hold is paying off well  with this amazing company. 

Go Long Go Strong Go Yangzijiang! 🚢🚢🚢🚀🚀🚀🌛🌛🌛🌈🌈🌈💰💰💰

For those who are new investors, Tiger Brokers is currently offering Zero Commission on all Singapore Stocks till October 31 2024 with the exciting opportunity to win fabulous prizes such as a Staycation at the luxurious Fullerton Hotel, stock vouchers and many more. 

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