See: Yangzijiang secures US$1.3 bil worth of new orders for 29 vessels
A key positive is its win – for the first time – from Shanghai Zhonggu Logistics, one of China’s largest domestic shipping liners, notes Lim. As part of this, the shipbuilder will supply 10 units of 4,600 TEU containerships.
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With this, Lim estimates Yanzijiang’s order book to be around US$3.7 to US$3.9 billion. She has also factored in US$1.8 billion in new orders for its ongoing FY2021. Lim adds that its strong net cash of RMB4.4 billion or 22 cents a share at end-September 2020, should allow it to sustain its above-market yield of 4.3%. For 4Q2020, she estimates the shipbuilder’s net profit to come in at RMB1 billion but cautions that there may be an earnings downside if the company records high forex losses since the RMB dipped 4% q-o-q.