$YZJ Shipbldg SGD(BS6.SG)

Yangzijiang Shipbuilding: A Buy After The Recent Dip? 🚢

Yangzijiang stands out as one of the earliest and most successful “S‑chips” since its listing on 18 April 2007. It has been a strong performer over time but its recent pullback from the S$4.42 peak leaves many investors asking: Has the rally ended or is this a good buying opportunity?

Let’s break down the key details:

🚀 What Drove The Rally

✅ Surge in profitability: ROE jumped from 5.78% in FY21 to an impressive 29.57% in FY25

✅ Attractive valuation: P/E of just 8.57x, plus a dividend yield of 5.85%

📉 Why It Pulled Back

⚠️ Cash flow: Operating cash flow dropped 66.29% to S$811.4 million in FY25

⚠️ Technicals: Price hit double‑top resistance at S$4.40–4.60, triggering profit‑taking

⚠️ Margin outlook: A shift toward more orders for smaller vessels could dilute margins moving forward

⚠️ Trading activity: Mixed institutional flows keep daily volatility elevated

🔷 Strong Order Backlog

The core business remains robust. YZJ holds a US$22.3 billion order book covering 252 vessels. It is around 69% of this value is for clean‑energy ships, supporting long‑term demand and visibility.

🔷The Verdict: Good For Accumulation

At S$3.42, the stock is testing support near its lower Bollinger Band (~S$3.34) while RSI has cooled to 41.79.

With multi‑year order visibility and a solid dividend track record, this dip might offers a favorable risk‑reward entry around S$3.40 for long‑term investors.

Not financial advice. Personal view. Always do your own DD. ☺️