Friday, June 24, 2011
Yangzijiang shares underestimated
Peter Dohle has penned an LOI for eight 10,000-teu vessels at the yard hot on the heels of it landing a potential $2.5bn contract for up to 25 10,000-teu vessels with Seaspan.
News of the latest capture, which is supported by a $1bn finance string from China Development Bank, failed to ignite Yangzijiang’s shares in Singapore yesterday.
Jon Windham of Barclays Capital said in a note to clients: “YZJ is too cheap for a yard winning this many orders.”
He notes the Seaspan and Dohle contracts have swelled the Yangzijiang’s orderbook, which sat at $5.4bn at the end of the first quarter, by 28%.
Windam, who describes the Dohle deal as a “significant win” for the yard, added: “We continue to view YZJ as the best positioned of the listed Chinese shipyards to win further container orders in 2011, given its proven track record in delivering quality vessels on-time.”
Published : June 24, 2011