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UOBKH lowers Yangzijiang Shipbuilding's GPM assumptions to account for inflation

Felicia Tan
Felicia Tan8/18/2022 02:46 PM GMT+08  • 3 min read
UOBKH lowers Yangzijiang Shipbuilding's GPM assumptions to account for inflation
YZJ currently trades at an inexpensive valuation of 5.4x FY2023 P/E, says UOBKH's Adrian Loh.
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UOB Kay Hian analyst Adrian Loh has kept his “buy” call on Yangzijiang Shipbuilding (Holdings) or YZJ after the Mainboard-listed group reported an operationally strong set of numbers for the 1HFY2022 ended June 30.

“YZJ reported 1HFY2022 revenue growth of 70% to RMB9.7 billion ($1.98 billion), which resulted in a 32% y-o-y increase in net profit from continuing operations to RMB1.2 billion,” notes Loh who has kept his target price unchanged at $1.16.

“We have used an 8x and 5x multiple for its shipbuilding and trading & other business segments respectively, thus arriving at a $1.14 and 4 cent/share valuation for these two segments,” the analyst writes.

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