Recent pick-up in global orders for dry bulk carriers is sustainable, bodes well orderbook replenishment for Cosco (F83.SG), Yangzijiang (BS6.SG), says DBS Vickers, says Dow Jones.

DBS Vickers notes orders in May hit high of 7.8 million tonnes in terms of carrier capacity, highest monthly achievement since global financial crisis. Says momentum can be sustained as demand in Asia strong: “Unlike the superboom in 2007-2008 when new orders were driven by major global shipping companies, the order recovery this time round is driven mostly by Asia’s small-medium shipping companies and cash-rich enterprises looking to order low-price vessels.”

The broker notes Cosco, Yangzijiang have secured US$520 million ($724 million), US$356 million worth of dry bulk orders respectively in past 3-4 months: “Our industry checks indicate that the shipyards are still seeing strong interests, which could potentially translate to firm orders in months ahead.”

Rates both at Buy, with target of $1.80 each. Cosco +0.7% at $1.51, Yangzijiang +1.5% at $1.32.