0233 GMT - Yangzijiang Shipbuilding's record-high order backlog boosts earnings visibility through 2027, DBS Group Research's Pei Hwa Ho says in a research report. The shipbuilder's yards are full through 2027 with an order book of roughly US$24 billion, which is expected to lead to earnings CAGR of around 14% over the next two years, the analyst says. Revenue growth and margin expansion are drivers, as about 65% of the company's order book consists of containership orders that command higher value and margins, the analyst adds. DBS raises its 2024-2026 earnings forecasts for Yangzijiang Shipbuilding by 5%-11%. It raises the target price to S$3.80 from S$2.88 with an unchanged buy rating. Shares are 1% lower at S$3.00. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
February 03, 2025 21:33 ET (02:33 GMT)
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