Yangzijiang Shipbuilding upgraded to ‘add’ by CIMB with lower $1.10 target price

CIMB has upgraded Yangzijiang Shipbuilding to “add” from “hold”, citing attractive valuations, but trimmed its target price to $1.10 from $1.21.

This follows a 93% fall in the company’s fourth quarter net profit.

“Weak rigs market and Baltic Dry Index resulted in impairment in fourth quarter,” notes CIMB. CIMB keeps its revenue forecast for the company steady at 14.5 billion yuan ($3.1 billion) in 2016 to account for potential cancellations of orders or delayed deliveries. Yangzijiang Shipbuilding had two cancellations in 2015.

As at 3.27pm, Yanzijiang was trading down 3.2% at 91 cents, while the benchmark Straits Times Index is down 0.02%.
Source: The Edge Markets