CITIGROUP report: YZJ has consistently surprised with a stronger than expected set of results. However, the contrasts in margins between pre-2008 and current new build ships suggest 2012 earnings will continue to be very strong while outlook beyond 2H13 remains uncertain.
This has depressed the stock valuation multiple. In view of the strong 9M FY11 profit, we raise our 2011 estimates by 17% but leave 12-13E estimates relatively unchanged. Our new target price is S$1.20 as we reduce the shipbuilding valuations in our SOTP valuations.
ya, read the news already. the stock price is going up now. it won 206.2million so far this year. the group is now securing orders for 2013 and beyond!!!doing quite well.
Today, Credit Suisse had a report making some forecasts about the upcoming FY2011 results. This is the line that caught my eye :
"Yangzijang is one of the cheapest stocks in Singapore market on P/B relative to ROE. The stock is currently trading at 2012E P/E of 7.2x, below its historical average of 12x. We maintain our OUTPERFORM rating."
Ok, let's see what happens when YZJ delivers report next week.
sunnyday, what is your target price?
This morning, YZJ delivered a good set of results -- and 5.5 cents in dividend, up from 4.5 cents last year. It doesn't sound like a S-chip at all... LOL
I was just checking back on what has been said & reported in the past. Came across this article Oct 2011:
'Average down YANGZIJIANG', 'buy BIOSENSORS, LIAN BENG'
YZJ turned out to have done well in its share-buyback -- purchased 1,000,000 shares at $0.89. And as the share price continued to plummet, bought back another 2,000,000 shares at $0.84.
The stock now at $1.36, up nearly 60% in 5 months.
Who were the sellers at those prices? Panic - sellers when the world was all gloom & doom. U gotta pray for another crisis to buy at such levels.
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