🦎 ANALYST WATCH | 14 AUGUST 2026

BS6 YANGZIJIANG SHIPBUILDING

WHAT THE ANALYST SAYS

UOB Kay Hian says first half results materially exceeded expectations, maintaining BUY and lifting its target price to S$5.30. Net profit rose 28.4 percent year on year to 5.37 billion renminbi, about 55 percent of the full year forecast. Revenue grew 36 percent to 17.5 billion renminbi, helped by an initial contribution from the still under construction Hongyuan yard, expected to complete by the end of this year and contribute roughly a fifth of group revenue once fully running in 2027. Gross margin expanded to 36.2 percent on a favourable order mix and the progressive recognition of higher priced 2023-24 contracts.

The net orderbook stood at 22.4 billion US dollars, broadly unchanged from the end of last year despite strong deliveries, with yard slots effectively booked through 2029. Management reported 1.96 billion US dollars of new contracts in the first seven months of the year and remains confident of hitting its 4.5 billion dollar full year order target. Average vessel prices have eased about 5 percent from 2023-24 peaks, but management says the company is still winning contracts near peak pricing on its execution reputation, and does not intend to compete on price over the next two years.

UOB Kay Hian raised its 2026-28 earnings forecasts by 11 to 22 percent on this outlook, and projects forward dividend yields of 6.1 to 6.9 percent assuming a 50 percent payout ratio.

NOTE

The dividend yield figures are UOB Kay Hian's own forward projections, not confirmed company guidance. For the full report, check UOB Kay Hian's published research or your broker platform.

Not financial advice. Iggy's Forensic Compliance Standards apply.