Shares of Singapore-listed Chinese shipbuilder Yangzijiang (YAZG.SI) rose as much as 3.8% on Monday after it said it had entered into a joint venture with Qatar Investment Corp to set up two companies, traders said.
At 9:55 a.m., Yangzijiang shares traded at $0.96 with more than 5.2 million shares changing hands.
At 9:55 a.m., Yangzijiang shares traded at $0.96 with more than 5.2 million shares changing hands.
Yangzijiang said its wholly-owned subsidiary will invest US$150 million ($194.5 million) in one of the companies, YZJ Offshore Engineering Co. (YOECCL), representing a 60% stake in the firm.
“This is providing a boost to Yangzijiang today. It’ll help the firm move into the new-build offshore support vessel market,” said a local dealer.
DMG & Partners said that while Yangzijiang’s valuations, trading at five times its estimated 2012 price-to-earnings ratio, was attractive, the upside in its share price will be limited by the poor outlook for commercial shipbuilding.
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