Yangzijiang Shipbuilding's recent share price decline is overdone, UOB Kay Hian analyst Adrian Loh writes in a note.

The Singapore-listed shipbuilder's share price has been negatively impacted due to the U.S. Trade Representative's proposed fees on Chinese-built vessels entering U.S. ports, Loh says.

Yangzijiang's management highlighted that its ship-owner clients have taken a wait-and-see approach and that it has not received any order cancellations or deferrals, Loh adds.

The brokerage trims the stock's target price to S$3.50 from S$3.60, while maintaining a buy rating. Shares are 2.1% lower at S$2.37.