Yangzijiang (BS6.SG) +2.0% at 4-month high of $1.54 in active trade as shipbuilder’s RMB107.7 million ($21.4 million) acquisition of wharf to expand production capacity suggests demand for its services still resilient despite underlying concerns over excess vessels worldwide, says Dow Jones.

Purchase comprises land, accompanying wharf (expected to be fully operational in September) in Jiangsu province. No mention of how deal will be funded but this shouldn’t be issue given Yangzijiang’s strong balance sheet.

“The company’s latest land and wharf acquisition is another good execution of its counter-cyclical strategy — enlarge its business scale to offset margin deterioration and sustain its earnings profile through the industry cycle,” says Morgan Stanley, which has Equalweight call with $1.43 target.

Immediate resistance at 52-week high of $1.57.