SINGAPORE (Mar 18): Yangzijiang Shipbuilding’s share price has tanked some 16% since the outbreak of the Covid-19. However, the counter has bucked the trend of other stocks in the benchmark Straits Times Index (STI), which have recently been on the downward trend. 

In a Tuesday report, DBS Group Research analyst Ho Pei Hwa notes that Yangzijiang has outperformed the STI by some 12%. In addition, the group is now trading at what the brokerage terms a “compelling” valuation. 

“Valuation remains compelling at 2SD below 5-year average price/book value (P/BV) of 0.5 times,” says Ho, adding that the group’s return on equity and dividend yield stand at 8% and 5% respectively. 

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