Yangzijiang (BS6.SG) surrenders gains after initial rise, off 1.5% at $1.35 vs +0.7% at $1.38 earlier, as purchase of 51% stake in China’s Jiangsu Changbo Shipyard, which would offer company additional revenue source, not enough to sustain interest, says Dow Jones.

“We believe the deal size is too small to be material,” says Morgan Stanley, which has Equalweight call, $1.08 target; notes, impact of RMB156 million ($31.8 million) investment on earnings will be less than $0.07/share even if Yangzijiang can achieve 7–8x return.

DBS Vickers, which has Buy call with $1.80 target, more bullish: “We believe Yangzijiang is aiming big, planning to turn the distressed asset into a highly efficient yard similar to its old yard, that will be capable of generating more than RMB500 million net profit a year in the mid term.”

Jiangsu Changbo current orderbook worth US$338 million ($468 million). Support eyed at last week’s low of $1.31.