Singapore Company Focus
Yangzijiang Shipbuilding Bloomberg: YZJSGD SP | Reuters: YAZG.SI
Refer to important disclosures at the end of this report
DBS Group Research . Equity
24 Sep 2013
BUY S$1.065 STI : 3,214.25
Beating the odds
Price Target : 12-Month S$ 1.32 (Prev S$ 1.22) Reason for Report : TP and earnings revision Potential Catalyst: Contract awards, earnings delivery DBSV vs Consensus: In line
Analyst HO Pei Hwa +65 6398 7968
[email protected]
First 10k TEU containership on track. Yangzijiang is hosting a yard visit on 25 Sept in conjunction with the launching ceremony of its first 10k TEU containership. Launching is the most important stage of construction, marking the birth of a new ship. All the blocks are mounted and joined, and the vessel should be ready to "float" at this stage. The on-track construction progress of Yangzijiang's first large containership is a confidence booster.
Price Relative S$
Relative Index
2.3
220
2.1
200
1.9
180
1.7
160
1.5
140
1.3
120
1.1
100
0.9
80
0.7
60
Sep-09
Sep-10
Sep-11
Yangzijiang Shipbuilding (LHS)
Sep-12
Sep-13
Relative STI INDEX (RHS)
Forecasts and Valuation FY Dec (RMB m)
Revenue EBITDA Pre-tax Profit Net Profit Net Pft (Pre Ex.) EPS (S cts) EPS Pre Ex. (S cts) EPS Gth (%) EPS Gth Pre Ex (%) Diluted EPS (S cts) Net DPS (S cts) BV Per Share (S cts) PE (X) PE Pre Ex. (X) P/Cash Flow (X) EV/EBITDA (X) Net Div Yield (%) P/Book Value (X) Net Debt/Equity (X) ROAE (%) Earnings Rev (%): Consensus EPS (S cts): Other Broker Recs:
2012A
2013F
2014F
2015F
14,799 4,859 4,434 3,581 3,581 19.1 19.1 (10) (10) 19.1 4.9 82.6 5.6 5.6 10.9 3.0 4.6 1.3 CASH 25.1
13,233 4,645 4,162 2,971 2,971 15.8 15.8 (17) (17) 14.6 4.7 93.7 6.7 6.7 18.8 3.5 4.4 1.1 CASH 18.0
12,442 3,768 3,096 2,218 2,218 11.8 11.8 (25) (25) 10.9 5.0 100.8 9.0 9.0 11.9 4.4 4.7 1.1 CASH 12.2
15,580 4,140 3,476 2,225 2,225 11.9 11.9 0 0 10.9 5.4 107.7 9.0 9.0 8.2 3.9 5.1 1.0 CASH 11.4
14.9 B: 8
6 11.5 S: 4
na 11.6 H: 8
ICB Industry : Industrials ICB Sector: Industrial Engineering Principal Business: The largest private containership builder in China who specialises in medium-sized containerships and bulk carriers.
Source of all data: Company, DBS Vickers, Bloomberg Finance L.P
www.dbsvickers.com ed: TH / sa: JC
Launching the first 10k TEU containership on schedule Raise FY14F earnings on better margins and order wins; FY15F earnings to benefit from property income Investment segment is well managed Best proxy to shipbuilding recovery in China; maintain BUY on higher TP of S$1.32
Raising the bar. The first batch of seven 10k TEU containership orders will likely yield better gross margins of 15-20% vs earlier expectation of low teens, in the light of favourable steel cost and forex as well as smooth execution. As such, we are lifting FY14F shipbuilding gross margins by 2ppts to 18%. We are also raising order win assumption for FY14 to US$2.5bn (from US$2bn), on the back of active shipbuilding enquiries and the sizeable US$2.87bn worth of options that could be exercised in the coming quarters. Taking these into account, our FY14F net profit is raised by 6.3% to Rmb2.2 bn. We have also introduced FY15 earnings and have incorporated property income from FY15. Maintain BUY; SOTP-based TP raised to S$1.32. We have changed our valuation methodology from price to book, to SOTP, to better reflect valuation for the various segments of shipbuilding, investment and property. While some investors have concerns regarding Yangzijiang's investment segment, it is a supplementary business for Yangzijiang and its weighting should fall as the shipbuilding segment recovers. Bad debts have been minimal with proper evaluation processes and risk management procedures in place. As one of the most cost efficient yards in China, Yangzijiang is the best proxy to the shipbuilding recovery. Maintain BUY. At A Glance Issued Capital (m shrs) Mkt. Cap (S$m/US$m) Major Shareholders Newyard Worldwide (%) Lido Point Investments (%) Hongkong Hengyuan (%) Free Float (%) Avg. Daily Vol.(‘000)
3,832 4,081 / 3,262 26.1 10.3 8.7 54.9 13,108
Company Focus Yangzijiang Shipbuilding
Launching of first 10k TEU containership Launching its first large containership. Yangzijiang will be launching its first 10k TEU containership on 25 Sept. Launching is the most important stage of the construction process, marking the birth of a new ship. Fig 1: Construction milestones Milestone
Description
Signing of contract
Starting point. First downpayment signals effectiveness of contract
Engineering design and production plan
Vessel design and production in details
Equipment and material purchase
Purchase and/or order all materials and equipment needed to complete the vessel.
Steel cutting
Steel plates are being cut into parts that will form the hull and deck sections of the ship; 2nd payment shall take place
Keel Laying
Fabrication of smaller blocks and mounting of ship sections to form a ship
Launching
All blocks are mounted and joined; float the ship in a dry dock that filled with water or on the berth
Finishing
Final finishing work at the quay.
Sea Trial
Test sail of the ship
Delivery
A new ship Is born!
Warranty
Warranty period is usually 12-24 months depending on contract
Source: DBS Vickers, industry sources
Delivery on track. The construction progress of the first two 10k TEU containership is on track for delivery in April’14 and June’14. The second unit will be ready for launch 1-2 months later. The first unit is constructed in Yangzijiang’s New Yard while the second one is at the Xinfu yard, the designated yard for big vessels. Construction for both vessels is expected to take 18 months. This should get shorter over time as Yangzijiang becomes more efficient and familiar with building large size containerships. Better than expected margins. Yangzijiang has 11 units of 10k TEU containerships on order from Seaspan, scheduled for delivery in 2014-2015. The first batch of seven units awarded in June 2011 were priced at US$100m each while the second batch of four units awarded in Jan 2013 were contracted at
Page 2
US$90m each. While gross margins were initially expected to be in the low teens, we reckon Yangzijiang could churn 1520% gross margins for the first few units in view of the favourable steel price and forex as well as smooth execution. As such, we are lifting our FY14F shipbuilding gross margins by 2ppts to 18%. Lifting order wins assumption. We are also raising our order wins assumption for FY14 to US$2.5bn, on the back of active shipbuilding enquiries and the sizeable US$2.87bn worth of options that will progressively be exercised in the coming quarters. We estimate that Yangzijiang’s net order book stands at US$3.7bn currently, translating to healthy book to bill ratio of 1.7x. The yard’s capacity is rather full for 2015 based on current contracts, and the options will largely fill up yard capacity for 2016. New orders other than the options will be slated for delivery in 2017. Raising FY14F net profit by 6%. The better margins and order win assumptions will raise our FY14F net profit by 6.3% to Rmb2.2bn. Incorporating property income into FY15F earnings. We introduce FY15F earnings forecast, which includes property income. As a recap, Yangzijiang established a new subsidiary, 50%-owned Jiangsu Huaxi Yangzi Real Estate Co, to jointly develop the old yard’s land with Jiangsu Huaxi Property Development (40%) and Jiangsu Huadu Real Estate (10%), which are both wholly-owned by A-share listed property company, Jiangsu Huaxichun Ltd. We project property income to contribute Rmb155m (or 7%) to Yangzijiang’s bottomline in FY15 based on the following assumptions: GFA Plot ratio Land cost Construction cost Finance cost ASP
300k sqm 1x Rmb2.5k psm Rmb4k psm Rmb200 psm Rmb11,000 psm
Source: Company, DBS Vickers
Investment in financial assets well managed Parked with moderate risk funds. More than 90% of the value of Yanzijiang’s financial investments are parked with reliable and moderate risk trust funds (held to maturity (HTM) financial assets), backed by high quality collateral. This compares to micro financing, which is relatively riskier given
Company Focus Yangzijiang Shipbuilding
the nature of lending to SMEs and half of the collaterals are harder to liquidate. As such, micro-financing investment is capped at Rmb1.2bn (6% of market cap) and so far, bad debts have been <1%.
Fig 2: Investment in HTM financial assets
Riskier, not riskiest. On the back of healthy operating profits, better payment terms than peers and good cash flow management, Yangzijiang remains in net cash (inclusive of financial assets) at Rmb6.5bn as of end-June 2013. Management has invested Rmb12.3bn of cash in the Held-toMaturity (HTM) financial assets and Rmb0.9bn in Micro Finance in an effort to maximise returns to shareholders. HTM yields 10-12% returns while micro finance churns higher returns of c.20%.
Source: Company
Fig 3: The structure of trust funds
Source: Company, DBS Vickers
We attempt to clarify a few major doubts and misperceptions that investors have in relation to Yangzijiang’s investments:
with brief explanation). This investment class accounted for >90% of Yangzijiang’s investments.
Doubt #1: Does the cash exist? HTM financial assets are essentially investments in trust funds, which eventually provide financing predominantly to established or listed companies. Trust funds are managed by trust companies that are set up by the Chinese banks, which are accessible and credible (Please refer to fig 3 for the structure of trust funds
The remaining <10% is micro finance, which is direct lending to SMEs mainly in Jiangsu. Investment amount is relatively small, capped at Rmb1.2bn or 7% of NTA. We believe Yangzijiang’s auditor, PWC, one of the big four global auditing firms, engaged since IPO in 2007, would have done their part to verify the investment.
Page 3
Company Focus Yangzijiang Shipbuilding
Doubt #2: High default risk; investment income vulnerable to customer defaults. Yangzijiang has formed a special investment committee, comprising 20 externally hired professionals with expertise in banking (management level), to evaluate investment risks of each trust fund. Each committee member will be responsible for the investment that he/she approves ie. penalties will be imposed for bad debts. All investments are backed by collaterals that are c.2x covered on average and margin call will be made when the investment value falls below the threshold. Prompt actions will be taken when any borrower misses interest payments. So far, Yangzijiang has not recorded any bad debts for HTM. As a prudent measure, the company has made a bad debt provision, amounting to 5% of the value of financial assets.
Micro Finance is a little tricky. While average coverage ratio is also high at 2-3x, only about half of the collaterals are liquid assets like mortgage and property. Collaterals on shares can be listed or unlisted shares and the latter will be difficult to dispose. Receivables and acceptance bills charges are tougher to liquidate. Personnel guarantees are among the riskiest collaterals as 3rd party guarantors may default on payment as well. Fig 5: Collateral breakdown and coverage ratio for HTM
As for Micro Finance, so far, bad debts have been minimal at <1% of total investments, lower than the 4% bad debt provision made.
Fig 4: Breakdown of borrowers (HTM)
Source: Company
Doubt #3: The collaterals are hard to value and liquidate. There were a couple of liquidation cases but Yangzijiang managed to recoup all of the investments made for HTM and the bulk of the value for Micro Finance.
Source: Company
Fig 6: Collateral breakdown for Micro Finance
For HTM, the value of land collateral is benchmarked against the neighbouring land plots, and the coverage ratio is high at c. 3x. The shares pledged (2x coverage ratio) are listed shares that could be easily traded in the secondary market. Other forms of collateral are government guarantees and bank guarantees etc while other-government related collaterals refer to lending to government related entities. These are relatively safe as well.
Source: Company
Page 4
Company Focus Yangzijiang Shipbuilding
Doubt #4: Is Yangzijiang diversifying away from shipbuilding? Management remains focus on its core business of shipbuilding. Financial investments, property and shipping logistics are only supplementary revenue streams to help the company weather through the shipbuilding downturn. Fig 7: Business chart
Switching to SOTP Valuation BUY, SOTP-based TP of S$1.32. We have changed our valuation methodology to SOTP, to better reflect the valuation for the various segments - shipbuilding, investment and property. We arrive at a new TP of S$1.32, after applying 10x FY14F PE on revised shipbuilding earnings; 1x P/BV for Investment; and 25% discount to NPV of its property project. This translates to 12x FY14F PE and 1.3x FY14 P/BV (vs 1.2x previously), which are undemanding in view of Yangzijiang’s ROE of 12% amid the industry downturn and order win catalyst from the shipbuilding recovery.
Source: Company
Fig 8: Yangzijiang’s SOTP valuation Components
% stake
FY14 PATMI (RMB m)
FY14 PATMI (S$ m)
Est. market value (S$ m)
Value per share (S$)
Basis
Remark
Shipbuilding
100%
1,151
240
2,398
0.63
10x FY14 PE
Historical average since listing
Investment
100%
1,092
227
2,628
0.69
1x P/Bv
(5)
30
0.01
25% discount to NPV
25% discount to SG & HK banks' average of 1.3x Benchmarked against Singapore developers
Property
50%
(25) 2,218
462
5,056
1.32
Source: Company, DBS Vickers
Fig 9: SGX-listed O&M peers Company Large Caps - Singapore Cosco Corp Keppel Corp SembCorp Industries SembCorp Marine Yangzijiang Shbg Average
Target
Mkt
Price
Cap (S$m)
(S$) 20-Sep
Price (S$)
Upside
Rcmd
1,791 19,592 9,249 9,550 4,157.8
0.800 10.840 5.180 4.570 1.085
0.83 12.90 5.60 4.70 1.32
4% 19% 8% 3% 22%
0.675 0.415 2.380 0.655 0.285 0.920
0.92 0.47 3.20 0.90 0.36 0.92
36% 14% 34% 38% 26% 0%
Small / Mid Caps - Singapore ASL Marine 285 CH Offshore 293 Ezion Holdings 2294 Jaya Holdings 505 Nam Cheong 599.4 Vard Holdings 1086 Average
FY12
PE (x) FY13F
FY14F
Hold Buy Buy Hold BUY
17.0 10.2 12.4 19.1 5.7 12.9
32.6 12.6 12.9 17.7 6.8 16.5
27.1 11.8 10.8 14.2 9.2 14.6
-20.9 -7.2 7.2 15.7 -21.2
1.4 2.1 2.1 3.9 1.3 2.2
Buy Hold Buy Buy Buy Buy
8.8 7.9 26.5 21.3 10.1 5.6 13.4
6.4 7.9 14.2 8.3 8.9 10.6 9.4
5.0 6.9 8.4 9.4 7.4 8.1 7.5
32.6 6.9 35.4 50.8 17.3 -16.9
0.8 0.9 3.9 0.8 2.34 1.6 1.7
CAGR 12-14
FY12
FY14
Div Yld FY 13F
ROAE FY12
EV /EBITDA FY12
1.4 1.9 1.9 3.5 1.2 2.0
1.3 1.8 1.7 3.1 1.1
1.2 4.0 2.7 2.8 4.3
8% 26% 17% 22% 25% 20%
8.3 7.7 7.0 12.2 3.0 7.6
0.7 0.9 2.8 0.7 1.78 1.4 1.4
0.7 0.8 2.1 0.7 1.5 1.3 1.2
3.1 6.6 0.0 6.1 1.7 2.8
9% 14% 23% 9% 26% 27% 18%
5.7 4.3 24.9 9.3 10.6 4.6 9.9
P/BV (x) FY 13F
Source: Bloomberg Finance L.P., DBS Vickers
Page 5
Company Focus Yangzijiang Shipbuilding
Key Assumptions FY Dec
Order wins (US$ m) Steel cost (RMB/t) RMB / USD
2011A
2012A
2013F
2014F
2015F
1,517.3 4,700.0 6.5
295.1 4,300.0 6.3
2,000.0 4,042.0 6.2
2,500.0 4,163.3 6.1
2,500.0 4,288.2 6.1
2011A
2012A
2013F
2014F
2015F
14,609 1,097 0
13,487 1,312 0
11,862 1,371 0
11,041 1,401 0
12,089 1,528 1,963
15,706
14,799
13,233
12,442
15,580
3,804 1,059 0
3,291 1,280 0
2,994 1,336 0
2,003 1,365 0
1,555 1,490 697
4,863
4,572
4,330
3,368
3,741
26.0 96.5 N/A
24.4 97.6 N/A
25.2 97.5 N/A
18.1 97.4 N/A
12.9 97.5 35.5
31.0
30.9
32.7
27.1
24.0
2011A
2012A
2013F
2014F
2015F
15,706 (10,843) 4,863 59 4,921 0 53 24 0 4,998 (988) (34) 0 3,977 3,977 5,143
14,799 (10,228) 4,572 35 4,606 0 0 (173) 0 4,434 (846) (7) 0 3,581 3,581 4,859
13,233 (8,904) 4,330 40 4,370 0 0 (207) 0 4,162 (1,141) (51) 0 2,971 2,971 4,645
12,442 (9,074) 3,368 47 3,415 0 0 (318) 0 3,096 (805) (74) 0 2,218 2,218 3,768
15,580 (11,840) 3,741 4 3,745 0 0 (269) 0 3,476 (997) (253) 0 2,225 2,225 4,140
15.8 43.6 44.1 34.6
(5.8) (5.5) (6.4) (10.0)
(10.6) (4.4) (5.1) (17.0)
(6.0) (18.9) (21.9) (25.4)
25.2 9.9 9.7 0.3
31.0 31.3 25.3 34.7 13.3 22.9 25.5 NM
30.9 31.1 24.2 25.1 10.7 15.7 25.7 26.7
32.7 33.0 22.5 18.0 8.2 11.5 29.6 21.1
27.1 27.4 17.8 12.2 5.5 8.0 42.6 10.7
24.0 24.0 14.3 11.4 5.2 7.9 45.3 13.9
Segmental Breakdown FY Dec
Revenues (RMB m) Shipbuilding Investment Property Total Gross profit (RMB m) Shipbuilding Investment Property Total Gross profit Margins (%) Shipbuilding Investment Property Total Income Statement (RMB m) FY Dec
Revenue Cost of Goods Sold Gross Profit Other Opng (Exp)/Inc Operating Profit Other Non Opg (Exp)/Inc Associates & JV Inc Net Interest (Exp)/Inc Exceptional Gain/(Loss) Pre-tax Profit Tax Minority Interest Preference Dividend Net Profit Net Profit before Except. EBITDA Growth Revenue Gth (%) EBITDA Gth (%) Opg Profit Gth (%) Net Profit Gth (%) Margins & Ratio Gross Margins (%) Opg Profit Margin (%) Net Profit Margin (%) ROAE (%) ROA (%) ROCE (%) Div Payout Ratio (%) Net Interest Cover (x)
Source: Company, DBS Vickers
Page 6
Margins Trend 33.0%
28.0%
23.0%
18.0%
13.0% 2011A
2012A
Operating Margin %
2013F
2014F
2015F
Net Income Margin %
Company Focus Yangzijiang Shipbuilding
Revenue Trend
Quarterly / Interim Income Statement (RMB m) FY Dec
2Q2012
3Q2012
4Q2012
1Q2013
2Q2013
6,000
60% 50%
5,000
54.3 12.4 13.1 13.2
30.5 28.6 22.3
29.4 32.5 24.3
30.5 27.7 22.7
36.1 35.6 25.0
27.5 26.1 18.4
2011A
2012A
2013F
2014F
2015F
Net Fixed Assets Invts in Associates & JVs Other LT Assets Cash & ST Invts Inventory Debtors Other Current Assets Total Assets
3,822 587 4,988 14,217 1,654 247 8,223 33,739
4,277 560 6,723 13,760 985 509 6,388 33,202
5,502 560 7,234 15,385 1,788 455 8,414 39,339
6,148 560 7,366 16,141 1,682 428 9,022 41,348
6,153 560 7,502 17,691 2,106 536 9,752 44,300
ST Debt Creditor Other Current Liab LT Debt Other LT Liabilities Shareholder’s Equity Minority Interests Total Cap. & Liab.
6,044 1,896 9,119 2,447 517 12,974 743 33,739
3,200 2,716 5,712 4,191 1,116 15,510 757 33,202
5,440 2,647 6,320 5,448 1,116 17,560 808 39,339
5,984 2,488 5,985 5,993 1,116 18,900 882 41,348
6,283 3,116 6,177 6,292 1,116 20,180 1,135 44,300
(890) 5,726 5.9 68.1 50.1 0.5 1.4 0.8 CASH CASH 5.7 2.1
(546) 6,369 9.3 84.4 48.3 0.4 1.9 1.2 CASH CASH 14.1 2.4
1,691 4,498 13.3 113.4 58.7 0.4 1.8 1.1 CASH CASH 13.8 2.1
2,659 4,165 13.0 107.5 72.6 0.3 1.9 1.1 CASH CASH 8.3 2.0
3,100 5,116 11.3 89.4 60.4 0.4 1.9 1.2 CASH CASH 3.2 0.0
Balance Sheet (RMB m) FY Dec
Non-Cash Wkg. Capital Net Cash/(Debt) Debtors Turn (avg days) Creditors Turn (avg days) Inventory Turn (avg days) Asset Turnover (x) Current Ratio (x) Quick Ratio (x) Net Debt/Equity (X) Net Debt/Equity ex MI (X) Capex to Debt (%) Z-Score (X)
0% -10% -20%
1,000
-30% 0
-40%
Revenue
2Q2013
(19.6) 4.1 3.3 (11.2)
10%
2,000
1Q2013
(1.3) (14.9) (15.8) (7.9)
20% 3,000
4Q2012
(8.3) 4.0 4.0 (0.1)
30%
3Q2012
6.8 (14.2) (14.6) (13.7)
Growth Revenue Gth (%) EBITDA Gth (%) Opg Profit Gth (%) Net Profit Gth (%) Margins Gross Margins (%) Opg Profit Margins (%) Net Profit Margins (%)
40%
4,000
2Q2012
4,422 (3,207) 1,215 (62) 1,153 0 (1) (44) 0 1,108 (299) 3 812 812 1,230
4Q2011
2,867 (1,833) 1,034 (14) 1,020 0 (2) (30) 0 988 (279) 8 717 717 1,094
1Q2012
3,563 (2,475) 1,088 (101) 987 0 2 10 0 1,000 (159) (33) 808 808 1,051
3Q2011
3,612 (2,549) 1,063 109 1,172 0 0 (71) 0 1,101 (239) 16 877 877 1,235
2Q2011
3,938 (2,736) 1,202 (75) 1,127 0 (1) (56) 0 1,070 (207) 15 878 878 1,188
1Q2011
Revenue Cost of Goods Sold Gross Profit Other Oper. (Exp)/Inc Operating Profit Other Non Opg (Exp)/Inc Associates & JV Inc Net Interest (Exp)/Inc Exceptional Gain/(Loss) Pre-tax Profit Tax Minority Interest Net Profit Net profit bef Except. EBITDA
Revenue Growth % (QoQ)
Asset Breakdown (2013) Debtors 3.9%
Inventory 15.4%
Net Fixed Assets 47.3%
Assocs'/JVs 4.8% Bank, Cash and Liquid Assets 28.7%
Source: Company, DBS Vickers
Page 7
Company Focus Yangzijiang Shipbuilding
Cash Flow Statement (RMB m) FY Dec
Pre-Tax Profit Dep. & Amort. Tax Paid Assoc. & JV Inc/(loss) Chg in Wkg.Cap. Other Operating CF Net Operating CF Capital Exp.(net) Other Invts.(net) Invts in Assoc. & JV Div from Assoc & JV Other Investing CF Net Investing CF Div Paid Chg in Gross Debt Capital Issues Other Financing CF Net Financing CF Currency Adjustments Chg in Cash Opg CFPS (RMB cts) Free CFPS (RMB cts)
Capital Expenditure 2011A
2012A
2013F
2014F
2015F
4,998 169 (661) (53) (10,585) 551 (5,581) (485) 0 (218) 62 (534) (1,175) (910) 6,443 0 (167) 5,365 0 (1,391) 130.4 (158.1)
4,434 252 (899) 0 (2,450) 502 1,839 (1,038) 0 (71) 15 17 (1,077) (1,058) (1,100) 0 331 (1,827) 0 (1,066) 111.8 20.9
4,162 275 (532) 0 (2,846) 0 1,060 (1,500) 0 0 0 (885) (2,385) (921) 3,497 0 0 2,576 0 1,251 101.9 (11.5)
3,096 354 (1,141) 0 (632) 0 1,677 (1,000) 0 0 0 (211) (1,211) (878) 1,089 0 0 211 0 677 60.3 17.7
3,476 395 (805) 0 (634) 0 2,432 (400) 0 0 0 (534) (934) (945) 599 0 0 (346) 0 1,152 80.0 53.0
1600 1400 1200 1000 800 600 400 200 0 2011A
2012A
2013F
Source: Company, DBS Vickers
Target Price & Ratings History
1.16
S$ S.No.
1.11
8
1.06
4
1.01
3
0.96 0.91
5
6
2
7
1
0.86 0.81 0.76 Sep-12
Jan-13
May-13
Note : Share price and Target price are adjusted for corporate actions.
Source: DBS Vickers
Page 8
Sep-13
1: 2: 3: 4: 5: 6: 7: 8:
2014F
Capital Expenditure (-)
Closing Price 08 Nov 12 0.94 04 Dec 12 0.91 16 Jan 13 1.02 17 Jan 13 1.02 22 Feb 13 1.00 29 Apr 13 0.95 12 Aug 13 0.96 11 Sep 13 1.04 Date
Target Price 1.20 1.20 1.20 1.20 1.10 1.02 1.02 1.22
Rating Buy Buy Hold Buy Hold Hold Hold Buy
2015F
Company Focus Yangzijiang Shipbuilding
DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps) FULLY VALUED (negative total return i.e. > -10% over the next 12 months) SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
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Company Focus Yangzijiang Shipbuilding
COMPANY-SPECIFIC / REGULATORY DISCLOSURES DBS Vickers Securities (Singapore) Pte Ltd and its subsidiaries has a proprietary position in the Sembcorp Marine as of 20-Sep1. 2013 2.
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3.
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DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA have received compensation, within the past 12 months, and within the next 3 months receive or intends to seek compensation for investment banking services from the Ezion, ASL Marine.
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