Shares of Singapore-listed Chinese shipbuilder Yangzijiang (YAZG.SI) rose as much as 4.4% on Wednesday, after DBS Vickers said in a report it expects the firm to outperform its peers, helped by its low valuations and a strong balance sheet.
At 10:44 a.m., Yangzijiang shares were 3.9% higher at $0.945 with around 9.4 million shares changing hands.
“We have a buy (rating) on Yangzijiang on the back of its undemanding valuations, as well as healthy balance sheet and strong management, which should help it navigate tough times and emerge stronger,” DBS Vickers said in a report.
However, it noted that the mismatch in demand and supply for all major shipping sectors over the next couple of years will continue to cap earnings and asset values.
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